Roth vs Traditional IRA Calculator - Tax Comparison (2026)

Compare projected Roth and Traditional IRA after-tax values, current tax savings and official 2026 contribution limits using your tax rates.

Updated 2026
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Key Summary

At 22% current and 18% retirement on $7,500 yearly for 30 years at 7% assumed, Roth is $708,000 tax-free while Traditional is $708,000 pre-tax and $580,600 after 18% plus $49,500 cash if not invested. At 22% both, Roth $708,000 equals Traditional $552,200 after 22% plus $49,500 cash, but investing the $1,650 yearly at 7% makes Traditional $736,795 total, beating Roth. According to IRS Notice 2025-67, the 2026 IRA limit is $7,500 plus $1,100 catch-up at 50+. This assumes a constant 7%; past performance does not guarantee future results.

Roth vs Traditional IRA Calculator

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How to Use the Roth vs Traditional IRA Calculator

1

Enter Annual IRA Contribution

Enter $7,500 for under 50, or $8,600 at 50+ with the $1,100 catch-up in 2026. This is the amount per year that grows at the assumed return for 30 years to $708,000 at 7%.

2

Set Current and Retirement Ages

Enter 35 to 65 for 30 years. At 7% assumed, $7,500 yearly for 30 years is $708,413 before taxes; at 6% it is $594,000 and at 8% $850,000.

3

Enter Expected Return

Enter 7% as a planning assumption. At 7% constant, $7,500 yearly for 30 years is $708,000; at 6% it is $594,000, a $114,000 spread for 1 point.

4

Enter Current and Retirement Tax Rates

Enter 22% current and 18% retirement. At 22% current, Traditional saves $1,650 yearly in tax versus Roth, which compounds to $49,500 over 30 years at 0% return but $376,000 if invested at 7%.

5

Compare After-Tax Values

Check Roth $708,000 tax-free versus Traditional $580,600 after 18% tax plus the invested $1,650 yearly tax saving, which determines the winner based on whether you invest the saving.

The formula
Future value = Annual contribution × [((1+r)^years −1)/r] | Traditional after-tax = Future value × (1 − retirement tax) | Traditional total if saving deduction = After-tax + Tax savings×(1+r)^years
Annual contribution
Amount per year up to $7,500 in 2026 ($8,600 at 50+), assumed contributed at beginning of year.
r
Assumed constant annual return as a decimal (e.g., 7% = 0.07), not a prediction.
years
Retirement age minus current age (e.g., 65−35=30).
Current tax savings
Annual contribution × current marginal rate, the upfront benefit of a deductible Traditional contribution (e.g., $7,500×22%=$1,650).
Retirement tax
Rate applied to the Traditional future value at withdrawal, here 18% in the example.

Roth vs Traditional After-Tax Value on $7,500 Yearly for 30 Years at 7% by Tax Rate (2026)

Current vs RetirementRoth after-taxTraditional after-taxTraditional + $1,650/yr cash*Winner (cash not invested)
22% now vs 18% later$708,458$580,935$630,435 (49.5k cash)Roth by $78,023
22% now vs 22% later$708,458$552,596$602,096Roth by $106,362
22% now vs 25% later$708,458$531,344$580,844Roth by $127,614
12% now vs 22% later$708,458$552,596$566,096 ($13.5k cash at 12%)Roth by $142,362
32% now vs 22% later$708,458$552,596$664,096 ($111k cash at 32%)Roth by $44,362
22% now vs 18% if cash invested$708,458$580,935$736,795 (155,860 invested)Traditional by $28,337
IRS limit 2026 $7,500 / $8,600 at 50+$708,458$580,935—See catch-up
*Cash = annual contribution × current rate × years at 0% (e.g., $1,650×30=$49,500 at 22%). Invested = $1,650×[1.07^30−1]/0.07 = $155,860 at 7% assumed. Future value $7,500×94.461=$708,458 at 7% 30yr beginning-of-year. Assumes constant 7% and no fees/limits. Source: IRS Notice 2025-67 limit $7,500 +$1,100 catch-up — irs.gov/pub/irs-drop/n-25-67.pdf; IRS Publication 590-A — irs.gov/pub/irs-pdf/p590a.pdf
Reference Provenance: Internal Revenue Service (2026)Official parameters verified for 2026

Do Roth and Traditional IRAs Grow Differently Before Tax?

No, the same $7,500 at the same 7% for the same 30 years grows to the same $708,458 before taxes in either wrapper. A $7,500 contribution at 7% for 30 years is $7,500×94.461 = $708,458, at 6% it is $593,948 and at 8% it is $849,636, but the account label never changes the growth factor. What differs is when tax is paid: Roth uses after-tax dollars and qualified withdrawals are tax-free, Traditional may deduct now and taxes the full future value at withdrawal. Past performance does not guarantee future results; this assumes a constant return.

The $1,650 difference on $7,500 at 22% current is the tax saving from a deductible Traditional that Roth does not get, and it compounds only if you invest it. Without investing it, Roth wins whenever current exceeds retirement, which is why the cash comparison matters.

When Does Roth Win and When Does Traditional Win?

Roth wins when the retirement rate exceeds the current rate or when you will not invest the Traditional deduction. At 12% now versus 22% later on $7,500 yearly for 30 years, Roth $708,458 beats Traditional after-tax $552,596 + $13,500 cash (12%×$7,500×30) = $566,096 by $142,362 without investing the cash, and even if you invest the $900 yearly saving at 7% it is $85,015, total $637,611 still $70,847 behind Roth. At 32% now versus 22% later, Roth $708,458 loses to Traditional $552,596 + $72,000 cash (32%×$7,500×30) = $624,596 by $83,862, and investing the $2,400 saving at 7% ($226,700) pushes Traditional to $779,296, $70,838 ahead.

Current vs RetirementRothTrad after-tax + cash
22% vs 18%$708,458$630,435
12% vs 22%$708,458$566,096

At the same 22% both, Roth $708,458 beats Traditional $552,596 + $49,500 = $602,096 by $106,362 if cash is not invested, but Traditional + invested $1,650 at 7% is $736,795, beating Roth by $28,337 at 18% retirement. Use the Income Tax Calculator to find your current marginal.

How Do 2026 IRS Limits and Income Phaseouts Affect My Choice?

The 2026 combined limit is $7,500 plus $1,100 catch-up at 50+ for $8,600 per IRS Notice 2025-67 (Source: IRS — irs.gov/pub/irs-drop/n-25-67.pdf). Roth single phaseout is $153,000 to $168,000 MAGI and joint $242,000 to $252,000; above that direct Roth is phased out and backdoor Roth via nondeductible Traditional plus conversion may be considered. Traditional deductibility also phases out if you or your spouse has a workplace plan: single $83,000 to $93,000, joint $123,000 to $143,000 where a spouse is covered.

Contributing $7,500 at $160,000 single MAGI is in the Roth phaseout, so only about $2,500 direct Roth may be allowed, while $7,500 Traditional would be nondeductible at that income with a workplace plan, making the conversion path the alternative. The 401(k) Calculator shows the much higher $24,500 employee limit that often dominates the IRA choice when both are available.

Should I Split Between Roth and Traditional or Go All-In?

Splitting hedges rate uncertainty. Contributing $3,750 Roth and $3,750 Traditional yearly for 30 years at 7% gives $354,229 Roth tax-free plus $354,229 Traditional pre-tax, which after 18% retirement is $290,468, total $644,697 after-tax plus $825 of the $1,650 total deduction cash at 22% on $7,500 if split ($3,750×22%=$825). All-Roth is $708,458 and all-Traditional after-tax + $49,500 cash is $630,435, so the 50/50 sits between them.

Tax diversification also helps with withdrawal sequencing: pull Traditional to fill the 10% and 12% brackets to $100,800 joint in 2026, then Roth for dollars that would be at 22%+. That sequencing can keep the effective retirement rate near 18% even when marginal is 22%. Model the bracket fill with the Income Tax Calculator and the long-run growth with the Compound Interest Calculator at the same 7% assumed.

Roth vs Traditional IRA Calculator - Frequently Asked Questions