Roth IRA vs Traditional IRA
A Roth IRA and a traditional IRA are both individual retirement accounts, and both can grow tax-deferred for decades. The real difference is tax timing: when the government takes its share. A traditional IRA is built around a pre-tax path — contributions may reduce taxable income now, growth is deferred, and withdrawals are generally taxed later. A Roth IRA runs the opposite way — contributions are made after tax, and qualified withdrawals are treated as tax-free planning value. Neither is universally better; the right choice depends on your tax rate now versus your expected tax rate in retirement, plus eligibility rules that change over time.
This page compares the two calculators so you can see which model matches the account you are evaluating. It is informational, not tax advice. Contribution limits, catch-up rules, income phaseouts, deductibility restrictions, and withdrawal rules change and vary by filing status, so verify current IRS guidance before acting on any number.
What each calculator does
The IRA calculator models the traditional path. It grows your current balance and annual contribution with monthly compounding, estimates investment growth, values a current-year deduction, and then applies a retirement tax rate to show an after-tax withdrawal estimate. It is explicitly a traditional IRA model: pre-tax contributions in, estimated tax on withdrawals out.
The Roth IRA calculator models the after-tax path. Contributions are not deducted now, and qualified retirement withdrawals are treated as tax-free planning value. The calculator’s own framing is deliberately different from the traditional page because the two accounts answer different questions about the same dollars. Note that the Roth IRA calculator is an archived historical snapshot on this site: it is preserved for reference, and its article says it must not be used as current United States guidance. Use it to understand the after-tax structure, then verify current eligibility and withdrawal rules with IRS publications before acting.
Side-by-side comparison
| Feature | Traditional IRA calculator | Roth IRA calculator |
|---|---|---|
| Contribution tax treatment | Pre-tax (deductible in the modeled scenario) | After-tax |
| Tax benefit now | Current-year deduction value shown | None modeled |
| Investment growth | Tax-deferred, monthly compounding | Tax-deferred, monthly compounding |
| Retirement withdrawals | Estimated tax applied, after-tax value shown | Qualified withdrawals treated as tax-free |
| Key output | After-tax withdrawal estimate | Tax-free withdrawal planning value |
| Deductibility handled? | Shows value if deductible; does not determine eligibility | Not applicable |
When to use which
The decision is mostly a marginal-rate question: if you expect to pay a higher tax rate in retirement than you pay today, the after-tax Roth structure can preserve more spendable value; if you expect a lower rate, the up-front deduction of a traditional IRA can be more valuable. Compare after-tax values, not just projected balances — a larger pre-tax balance is not automatically more spendable.
Use the traditional calculator when you are modeling deductible contributions, want to see the deduction value and an after-tax withdrawal estimate, or expect retirement withdrawals to be taxed at a lower rate. Use the Roth calculator when you are modeling after-tax contributions and tax-free qualified withdrawals, such as when your current rate is low or you expect a higher rate later. Before choosing, check whether you are eligible for a Roth contribution at your income level and whether your traditional contribution is actually deductible — coverage by a workplace plan and income phaseouts can change the answer.
Where to start
- IRA calculator — traditional, pre-tax path with deduction value and after-tax withdrawal estimate.
- Roth IRA calculator — after-tax path with tax-free qualified withdrawals.
Informational note: This page is an educational comparison, not tax, legal, or financial advice. IRS contribution limits, income phaseouts, deductibility rules, required minimum distribution rules, and penalty exceptions change, and eligibility depends on your filing status, income, and workplace plan coverage. Confirm current rules with IRS publications or a tax professional before making decisions.