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//// Personal Finance · Retirement

Roth vs Traditional IRA

Enter your age, contribution, current and expected retirement tax brackets, and return rate — see after-tax balances side by side, the exact break-even retirement tax rate, and which account wins for your situation.

yrs
yrs
%
max $7,000
$
optional
$
optional
$

Roth IRA

Winner

Balance at retirement

$967,658

$967,658

after-tax (100% tax-free)

Traditional IRA

Balance at retirement

$967,658

$754,773

after-tax (22% withdrawal rate)

Roth IRA is the better choice

With a 22% retirement bracket (same or higher than your current 22%), the Roth wins by leaving you $212,885 more after tax. Pay taxes now while rates are lower or equal.

Break-Even Retirement Tax Rate

0.0%

If your retirement tax rate is above this, Roth wins. Below it, Traditional wins. Your current setting (22%) is above the break-even.

IRS Contribution Limits (2024)

You can contribute up to $7,000/year if under 50, or $8,000/year with the catch-up contribution if 50 or older. Roth IRA eligibility phases out at higher incomes ($146k–$161k single / $230k–$240k married for 2024). Traditional IRA deductibility depends on whether you have a workplace plan.