Roth vs Traditional IRA

Live comparison of after-tax money in retirement.

Current marginal tax rate (%)

Expected tax rate in retirement (%)

Annual contribution ($)

Years until retirement

Expected annual return (%)

Traditional IRA (net after tax in retirement)

$369,514

You pay tax later on the entire balance at your future rate.

Roth IRA (net in retirement)

$360,039

You pay tax on the contribution now, then everything grows tax-free.

Roth advantage in this scenario: $-9,475

Simplified model. Actual results depend on your tax situation, investment returns, contribution limits, and withdrawal rules.