Wealth Tradeoff Calculators
Roth vs. Traditional Contribution Calculator
Compare Roth and traditional retirement contributions based on current tax rate, expected future tax rate, contribution limits, investment growth, tax savings, and after-tax retirement value.
Roth and traditional retirement contributions are taxed differently. Roth contributions are made after tax and may grow tax-free if qualified. Traditional contributions may reduce taxes today, but withdrawals are generally taxed later. This calculator compares both paths using your tax assumptions, contribution amount, time horizon, investment return, and whether you invest the traditional tax savings.
Educational estimate only. This calculator is not financial, investment, tax, legal, retirement, brokerage, or professional advice.
This is a simplified retirement contribution estimate. It does not determine eligibility, deductibility, qualified withdrawal status, plan rules, or tax filing outcomes.
Jump to resultsAccount and contribution
Limits are included as editable planning defaults. Actual eligibility and limits can vary.
Limits are included as editable planning defaults. Actual eligibility and limits can vary.
Optional. Used only for simplified Roth eligibility notes, not exact eligibility.
Comparison mode
If you invest the traditional tax savings, the traditional path may include a side account in addition to the retirement account.
Tax assumptions
The future tax rate is one of the biggest assumptions. This calculator does not predict future tax law.
Growth assumptions
Investment returns are not guaranteed. This calculator uses steady expected returns for planning, not a market forecast.
Withdrawal assumptions
This calculator does not determine whether Roth withdrawals are qualified.
Employer match and workplace plan assumptions
Many employer matching contributions are treated as pre-tax. This calculator uses simplified assumptions only.
Scenario presets
Use a preset to quickly test a retirement contribution situation, then adjust any input.
Frequently asked questions
What is the difference between Roth and traditional contributions?+
Roth contributions are generally made after tax. Traditional contributions may reduce taxable income today, with withdrawals generally taxed later.
When might Roth contributions make sense?+
Roth may look stronger in the estimate when future tax rates are higher than current tax rates or when tax-free growth assumptions matter more.
When might traditional contributions make sense?+
Traditional may look stronger when current tax rates are higher, future tax rates are lower, and current tax savings are invested.
What does “same out-of-pocket cost” mean?+
It compares Roth and traditional using the same after-tax budget. That can allow a larger traditional contribution before contribution limits apply.
Should I invest the traditional tax savings?+
The calculator can model invested tax savings because spending the savings instead of investing them can materially change the comparison.
What is the break-even future tax rate?+
It is the simplified future tax rate where the Roth and traditional paths are approximately equal based on your inputs.
Does this calculator determine Roth IRA eligibility?+
No. It can show a simplified income phaseout caution, but it does not determine eligibility, reduced contribution amounts, or deductibility.
Is this financial or tax advice?+
No. This is an educational estimate based on user-entered assumptions and is not financial, investment, tax, legal, retirement, brokerage, or professional advice.