Roth IRA vs Traditional IRA: Which Should You Choose?
Compare the future after-tax value of one contribution under different current and retirement tax-rate assumptions.
Roth vs Traditional scenario
This comparison isolates the tax timing difference. It does not determine eligibility or model every tax detail.
Traditional IRA after tax
$40,497
Taxed at your estimated retirement rate
Roth IRA after tax
$53,286
Modeled as tax-free qualified withdrawal
Roth advantage in this scenario
$11,249
Positive means Roth has the higher modeled after-tax value
Modeled result: Roth IRA under these tax-rate assumptions.
How the comparison works
The model grows the same contribution at the same return for the same period. It then applies the future tax rate to the Traditional IRA value while treating the Roth value as tax-free if qualified. The Roth advantage includes the opportunity cost of forgoing the Traditional IRA tax deduction today. The winner is determined by the standard tax-rate comparison: if your future rate is lower than your current rate, Traditional wins; if higher, Roth wins; if equal, it is a tie on tax timing.
Rules this tool does not decide
Roth IRA eligibility, income limits, deductibility of Traditional IRA contributions, contribution limits, the five-year rule, and qualified-distribution rules all matter. Review the current IRS rules before contributing.
Source: IRS Roth account rules. A modeled result is not a recommendation.
Figures current as of 2026-09-25. Found an error? Contact us.