Roth Vs. Traditional IRA Calculator
Compares long-term tax impact and final savings between Roth and Traditional retirement accounts
$442,743.26
$376,331.77
$442,743.26
$66,411.49
Roth IRA is better by $66,411.49
Frequently Asked Questions
What is the difference between a Roth and Traditional IRA?
With a Traditional IRA, contributions may be tax-deductible now, but withdrawals in retirement are taxed as income. With a Roth IRA, contributions are made with after-tax dollars, but qualified withdrawals in retirement are completely tax-free, including all growth.
What are the IRA contribution limits?
For 2024, the annual IRA contribution limit is $7,000 ($8,000 if age 50+). This limit applies to your total IRA contributions across all Traditional and Roth accounts combined. Roth IRA contributions phase out at higher income levels.
When is a Roth IRA better than a Traditional IRA?
A Roth IRA is typically better if you expect your tax rate in retirement to be higher than your current rate. This is common for younger workers early in their careers, those expecting significant income growth, or anyone who wants tax-free withdrawals and no required minimum distributions.
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