Roth vs. Traditional IRA Calculator

Choosing between a Roth IRA and a Traditional IRA can feel like a coin toss. Both offer retirement savings benefits. But which is a better fit for your financial situation and goals? Our free Roth vs. Traditional IRA Calculator can help you compare the difference over time with each type of account.

But first, here’s a high-level look at the differences between a Roth vs. Traditional IRA:

• Contributions to a Traditional IRA are made on a pre-tax basis, resulting in a lower tax bill and higher take-home pay. But once you’re eligible to make withdrawals, your withdrawals will be taxable.
• Contributions made to a Roth IRA are made on an after-tax basis, which means that taxes are paid on the amount contributed in the current year. But once you’re eligible to make withdrawals, your withdrawals will not be taxed.

Ready to crunch the numbers and compare? Simply enter a few details into the IRA calculator to get started:

• Before tax income
• Annual contributions
• Your current age and expected retirement age

The more info you provide, the more accurate your estimate could be. You can also include:

• Your projected rate of return on your investments
• Your current and retirement tax rates
• Marital status
• Whether you have an employer retirement plan

Feel free to play with the numbers to see how changes in your contributions or retirement age impact your estimates. And remember, these are estimates. Your age, income and retirement goals will all play a role in determining which account is the best fit for you.

Have questions? We’re here to help you prepare for your dream retirement. You can give us a call at 800-373-7600.