Roth IRA vs Traditional IRA Calculator
Should you choose Roth or Traditional? Compare after-tax retirement balances based on your current tax rate vs expected rate in retirement.
2026 limit: $7,000 (under 50)
Roth vs Traditional: The Core Difference
Both accounts grow tax-free. The difference is when you pay tax:
| Account | Contribution | Growth | Withdrawal | |---------|-------------|--------|------------| | Traditional IRA | Pre-tax (deductible) | Tax-deferred | Taxed as ordinary income | | Roth IRA | After-tax (no deduction) | Tax-free | 100% tax-free |
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2026 IRA Limits
| Type | Under 50 | Age 50+ | |------|----------|---------| | Roth IRA | $7,000 | $8,000 | | Traditional IRA | $7,000 | $8,000 |
Roth income phase-out: $150,000–$165,000 (single), $236,000–$246,000 (MFJ)
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When Roth Wins
- You are early in your career (lower tax bracket now, higher later)
- You expect tax rates to rise over time
- You want tax-free income in retirement (reduces Social Security taxation)
- You want no Required Minimum Distributions (Roth has no RMDs)
When Traditional Wins
- You are in a high tax bracket now and expect to be lower in retirement
- You want to reduce taxable income this year
- You live in a high-tax state and plan to retire in a lower-tax state
Frequently Asked Questions
Q: What is the 2026 IRA contribution limit?
A: The 2026 IRA contribution limit is $7,000 for those under age 50, and $8,000 for those age 50 or older. This limit is combined across all your IRAs (Roth + Traditional). You cannot exceed this total regardless of how many accounts you have.
Q: Who can contribute to a Roth IRA in 2026?
A: Roth IRA contributions phase out at $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly in 2026. Above these limits you cannot contribute directly (though a backdoor Roth conversion may be available).
Q: Can I have both a Roth IRA and a Traditional IRA?
A: Yes. You can contribute to both in the same year, but your total contributions across all IRAs cannot exceed the annual limit ($7,000 under 50). Many people benefit from holding both types to diversify their tax exposure in retirement.
Q: When does Roth IRA win vs Traditional?
A: Roth wins when your current tax rate is lower than your expected retirement tax rate. Traditional wins when your current rate is higher and you expect to pay less tax in retirement. If uncertain, split between both.
Official Sources & Authority References
Important Disclaimer
This calculator provides estimates for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws change annually — verify figures with IRS.gov or consult a qualified tax professional before making financial decisions.
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