Roth vs. Traditional IRA
The answer depends on one thing: your tax rate now versus your tax rate in retirement. Change the inputs below to see which wins for you — with real after-tax numbers.
Your Numbers
The Core Tradeoff
Both accounts grow tax-free. The difference is when you pay taxes. Traditional gives you the deduction now and taxes withdrawals later. Roth uses already-taxed money but withdrawals are completely tax-free.
The simple rule: if your tax rate is lower now than it will be in retirement, choose Roth. If higher now, choose Traditional. But "retirement tax rate" is harder to predict than most people realize.
The Hidden Factors Calculators Miss
- Required Minimum Distributions (RMDs). Traditional IRAs force withdrawals starting at age 73. Roths don't. This gives Roth an edge for estate planning and legacy goals.
- Tax bracket creep. Today's 24% bracket may become tomorrow's 28% if current tax cuts expire in 2026.
- Social Security taxation. Traditional withdrawals can push your Social Security benefits into taxable territory. Roth withdrawals don't.
- Medicare premiums. Higher taxable income in retirement increases Medicare Part B and D premiums through IRMAA surcharges.
Most people underestimate their retirement tax rate. Between these hidden effects and likely future tax increases, Roth often wins even when the surface math favors Traditional.
The Retirement Tax Planner
Model your full retirement tax picture including Social Security, RMDs, and Medicare.
Frequently Asked Questions
Can I contribute to both a Roth and Traditional IRA?
Yes, but the combined contribution can't exceed the annual limit ($7,000 in 2026, $8,000 if 50+). You can split contributions between them however you want.
What's the income limit for Roth IRA in 2026?
For single filers, contributions phase out between $146,000-$161,000 modified AGI. For married filing jointly, $230,000-$240,000. Above the upper limit, you can't contribute directly but can do a "backdoor Roth" conversion.
Can I withdraw Roth contributions anytime?
Yes — contributions (not earnings) can be withdrawn any time, tax-free and penalty-free. This makes Roth effectively double-duty as both retirement savings and a backup emergency fund, which is one of its underrated advantages.
Should I do a Roth conversion?
Maybe. Good candidates: low-income years (unemployment, early retirement, sabbaticals), before Social Security/RMDs kick in, or if you expect higher tax rates later. The conversion is taxed at your current rate, so do it in years when your rate is temporarily low.