Pay tax now or pay tax later? The same out-of-pocket money, two tax treatments, one honest comparison of what you actually keep.
Traditional gets the full amount (it's deductible). Roth gets what's left after tax now — same money out of your pocket either way.
The whole decision lives here. Many retirees land in a lower bracket than their peak earning years — but big balances, pensions, or higher future rates can flip it.
The Roth line is flat — its tax is already paid at today's rate. The dot marks your retirement-rate guess.
This Roth vs. Traditional calculator compares the two account types fairly by holding your out-of-pocket cost equal. It then applies your current and expected future tax rates to show which option leaves more spendable money in retirement.
To compare fairly, the calculator holds your out-of-pocket cost equal. A Roth contribution is made with after-tax money and grows tax-free; an equivalent traditional contribution is larger (because it's pre-tax) but is taxed on withdrawal. Applying your current and expected future tax rates to each shows which leaves more spendable money, and the break-even future tax rate where they tie.
Roth tends to win if your tax rate will be higher in retirement; Traditional wins if it will be lower. If they are similar, the difference is small.
Traditional contributions are deducted at today's rate and taxed on withdrawal; Roth is taxed today and tax-free later. The gap between those rates decides the winner.
Yes. Many savers split contributions to hedge against uncertain future tax rates, subject to the combined annual contribution limit.
Roth tends to win if your tax rate will be higher in retirement than today; traditional wins if it will be lower. If the rates are similar, the difference is small.
Yes, many savers split contributions to hedge against uncertain future tax rates, subject to the combined annual contribution limit. See our contribution-limits reference for the current caps.
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