Pay the tax now or pay it later? Compare Roth and Traditional IRA or 401(k) contributions on what you actually get to spend in retirement.
Better choice for these numbers
Traditional
by about $40,709 of spendable money after 25 years.
Tax rate now
22%
Tax rate in retirement
12%
Roth, spendable
$318k
Traditional, spendable
$358k
Same pre-tax budget: Roth gets the contribution minus today's tax; Traditional gets it all, taxed on the way out.
Ask about your result
An AI reads the numbers above and explains what they mean for you, in plain English. It only runs when you press the button.
0/400
Explainer: the bracket stairs
Your income doesn't get one tax rate. It pours into 2026 federal brackets like water filling steps. Drag the slider to see which dollars land where, and why the rate that matters for Roth vs Traditional is the top step, not the average.
The first $16,100 is covered by the standard deduction and taxed at 0%. Everything above fills the steps from the bottom.
10%
$1,240
12%
$4,560
22%
$5,170
24%
–
32%
–
35%
–
Tax: $10,970. Top dollar taxed at 22% (your marginal rate), but the whole income is taxed at only 12.2% on average (your effective rate). A Traditional contribution saves tax at the marginal rate; a Roth avoids tax later at whatever marginal rate your retirement withdrawals land in.
Why equal tax rates give identical results
Say you have $1,000 of pre-tax salary to save and a 22% rate. Traditional invests the full $1,000; if it triples you have $3,000, and after 22% tax you keep $2,340. Roth pays the 22% first, invests $780, which triples to $2,340. Same number. The whole decision comes down to one question: will the tax rate on your withdrawals be higher or lower than the rate you'd save today?
The "staircase" picture is the part most people get wrong: moving into a higher bracket only taxes the dollars above the line at the higher rate. It's the reason a Traditional contribution can be worth more than your average tax rate suggests. Watch those steps fill as income climbs on ahaboo, and the rest of this page reads faster.
When Roth tends to win
You are early in your career and in the 10% or 12% bracket.
You expect big RMDs, a pension or a surviving spouse filing single to lift your later rate.
You already max out and want more after-tax money sheltered.
When Traditional tends to win
You are in your peak earning years in the 24% bracket or higher.
You plan to retire to a state with no income tax.
You expect a gap between retiring and RMDs to do cheap Roth conversions.
Questions people ask
Is Roth or Traditional better?
If your tax rate on withdrawals in retirement will be lower than your marginal rate today, Traditional usually wins. If it will be higher, Roth wins. If the rates are equal, they come out exactly the same for the same pre-tax budget, because multiplication order does not matter.
Does this work for a 401(k) as well as an IRA?
Yes. The comparison is identical for a Roth vs Traditional 401(k) and a Roth vs Traditional IRA. The difference is only in limits and income rules, not in the maths.
What about maxing out the account?
If you contribute the maximum either way, a Roth dollar holds more after-tax value than a Traditional dollar, since the tax is already paid. Tick "I contribute the max" and the calculator assumes the Traditional tax saving is invested in a taxable account instead.
Why not just use my current bracket for retirement?
Many retirees have less taxable income than while working, especially before Social Security and RMDs start. But RMDs, Social Security taxation and a surviving spouse filing single can push rates up. Estimate your retirement taxable income with the bracket stairs below.
Does it include state tax?
Enter combined federal plus state rates if you want state tax included. Moving from a high-tax state to a no-income-tax state in retirement is one of the strongest arguments for Traditional.