βοΈ IRA Calculator
Traditional vs Roth head to head with 2026 IRS limits and your tax rates.
After-Tax Value in Retirement
Estimates for planning only, not financial advice. 2026 IRA limit: $7,500 under 50, $8,600 at 50+.
Traditional or Roth IRA: The Short Answer
Pick Roth if you expect to be in a higher tax bracket in retirement than you are now, which is typical for young workers and early-career earners. Pick traditional if you are a peak earner deducting at a high marginal rate today and expect to withdraw at a lower average rate later. If your rates look similar either way, the honest answer is that it barely matters, so choose based on flexibility: Roth gives you tax-free withdrawals and no required minimum distributions.
One more thing before the details: the $7,500 limit for 2026 applies across all your IRAs combined, not per account. You cannot put $7,500 in a traditional IRA and another $7,500 in a Roth IRA in the same year.
How to Use This Calculator
Enter your age and retirement age, your planned annual contribution, an expected return, and your marginal tax rate now versus in retirement. The calculator grows the same contribution in both account types and compares what you actually get to spend, after all taxes are paid.
Enter your Age and Retirement Age. Your 2026 contribution cap is $7,500, or $8,600 from age 50 on.
Enter your Annual Contribution and Expected Annual Return. The same dollars go into both scenarios so the tax treatment is the only difference.
Enter your Current Marginal Tax Rate, the rate on your top dollar of income today, and your best guess at your retirement rate.
Compare the after-tax values. The verdict line names the winner and the dollar gap, so you can see whether the choice even matters much for you.
2026 IRA Limits and Income Phase-Outs
Here are the 2026 figures from IRS Notice 2025-67. Two different tests apply: the contribution limit (same for everyone) and the income phase-outs (which decide whether your contribution is deductible or, for Roth, allowed at all).
| Rule | 2026 figure |
|---|---|
| Contribution limit, all IRAs combined | $7,500 |
| Catch-up at age 50+ | $1,100 (total $8,600) |
| Roth IRA phase-out, single / head of household | $153,000 - $168,000 MAGI |
| Roth IRA phase-out, married filing jointly | $242,000 - $252,000 MAGI |
| Traditional deduction phase-out, single covered by work plan | $81,000 - $91,000 MAGI |
| Traditional deduction phase-out, joint covered by work plan | $129,000 - $149,000 MAGI |
Key point most people miss: having a 401(k) at work does not block Roth IRA contributions, it only affects whether a traditional IRA contribution is deductible. And if neither you nor your spouse is covered by a workplace plan, the traditional IRA deduction is generally fully available regardless of income.
The Traditional vs Roth Math
With identical contribution dollars, the entire contest reduces to one comparison: your marginal rate today versus your effective rate on withdrawals later. If your retirement rate is lower, Traditional wins; if higher, Roth wins; if equal, they tie. The subtlety is that Traditional withdrawals fill brackets from the bottom, so your average retirement rate is usually well below your working marginal rate.
Worked Example
You are 35, retire at 65, contribute $7,500 a year for 30 years, and earn 7 percent. The future value factor is ((1.07^30 - 1) / 0.07) = 94.4608, so both accounts reach $708,455.90 before taxes. In a Traditional IRA taxed at 12 percent in retirement, you keep $708,455.90 x 0.88 = $623,441.19. In a Roth, you keep the full $708,455.90, a gap of $85,014.71. But notice the hidden cost: each $7,500 Roth contribution really cost you $7,500 / 0.78 = $9,615.38 of pre-tax earnings at a 22 percent marginal rate, while the Traditional contribution cost only $7,500 minus the tax saved.
Withdrawal Rules: What You Can Touch and When
Roth IRA contributions can be withdrawn at any age, tax-free and penalty-free, because you already paid tax on them. Earnings are a different story: they come out tax-free only if you are 59 1/2 or older and your account has been open at least five tax years. The IRS treats withdrawals as coming from contributions first, then conversions, then earnings, which works in your favor.
Traditional IRAs are stricter. Withdrawals before 59 1/2 generally face income tax plus a 10 percent penalty, with exceptions for first-time home purchases, higher education, and a few other cases. Starting at 73, required minimum distributions force you to withdraw a slice each year whether you need it or not. Roth IRAs have no lifetime RMDs for the original owner, which is a genuine planning advantage: the money can keep growing untouched for as long as you like.
The Backdoor Roth for High Earners
Earn too much for direct Roth IRA contributions? The backdoor Roth is the standard workaround: contribute $7,500 to a traditional IRA as a non-deductible contribution, then convert it to a Roth IRA. There is no income limit on conversions, so the strategy is fully legal. It works cleanest when you have no other pre-tax IRA money, because the IRS pro-rata rule taxes conversions proportionally if you do. If you have a big rollover IRA sitting around, talk to a tax professional before attempting this.
Beyond the Math: Flexibility Matters Too
Roth IRAs have no required minimum distributions for the original owner, and qualified withdrawals do not raise your taxable income, which can keep Medicare premiums and Social Security taxation lower. Traditional IRAs give you the deduction when you may need it most. Many savers split contributions between both, buying tax diversification instead of betting everything on one future. Check the 2026 income phase-outs in the FAQs before assuming you qualify for either.
Keep Exploring
Compare 401(k) tax treatments with the Roth vs traditional 401(k) calculator, project your workplace plan with the 401(k) calculator, build the full plan with the retirement savings calculator, and check your actual tax rates with the income tax calculator.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What are the 2026 IRA contribution limits?
For 2026 you can contribute $7,500 total across your Traditional and Roth IRAs, or $8,600 if you are 50 or older, thanks to the $1,100 catch-up that is now indexed for inflation (IRS Notice 2025-67). The limit also cannot exceed your taxable compensation for the year. This calculator warns you if your entry exceeds the limit for your age.
What is the real difference between Traditional and Roth?
Traditional contributions may be tax-deductible now, and every dollar withdrawn in retirement is taxed as ordinary income. Roth contributions are made with after-tax dollars, but qualified withdrawals, including all the growth, are tax-free. The core bet is your tax rate now versus your tax rate in retirement.
Who can contribute to a Roth IRA in 2026?
Single filers with modified adjusted gross income under $153,000 can contribute the full amount, with a phase-out up to $168,000. Married couples filing jointly get the full amount under $242,000, phasing out up to $252,000. Above those ceilings, direct Roth contributions are off the table, though the backdoor Roth strategy remains.
When is a Traditional IRA deductible?
If neither you nor your spouse is covered by a workplace retirement plan, the deduction is generally fully available. If you are covered, the 2026 deduction phases out from $81,000 to $91,000 of MAGI for singles and $129,000 to $149,000 for joint filers. If only your spouse is covered, your deduction phases out from $242,000 to $252,000.
Why does the calculator favor Traditional when my retirement rate is lower?
Because Traditional contributions are deducted at your marginal rate today, the top slice of your income, while withdrawals in retirement fill the brackets from the bottom up. Someone deducting at 24 percent now but withdrawing at an average 12 percent later keeps the spread. That math is why peak earners usually win with Traditional.
Does the comparison assume the same contribution dollars?
Yes, and that assumption favors Roth slightly, because a $7,500 Roth contribution costs more in pre-tax dollars than a $7,500 deductible Traditional contribution. The fairest comparison invests the Traditional tax savings too. If you will actually invest the refund rather than spend it, Traditional looks better than this simple comparison shows.
What is the Roth IRA five-year rule?
To withdraw Roth earnings tax-free, your first Roth IRA contribution must have been at least five tax years ago, and you must be 59 1/2 or older (or meet an exception). The clock starts January 1 of the year you first contributed. Your own contributions can be withdrawn anytime tax-free; only the earnings are subject to the five-year test.
Can I withdraw Roth IRA contributions anytime?
Yes. You can withdraw the money you contributed to a Roth IRA at any age, with no tax and no penalty, because you already paid tax on it. This makes a Roth IRA a surprisingly flexible account: it can double as a backup emergency fund, though raiding retirement savings should still be a last resort.
Can I have more than one IRA?
Yes, you can open as many IRAs as you like at different providers. But the $7,500 annual limit ($8,600 at 50+) applies across all of them combined, not per account. Multiple accounts can make sense for separating a backdoor Roth from pre-tax money, but most people are better off keeping things simple in one or two accounts.
What is a backdoor Roth IRA?
A backdoor Roth is a two-step strategy for high earners: make a non-deductible contribution to a traditional IRA, then convert it to a Roth IRA. There is no income limit on conversions, so this works even above the Roth phase-out. It is cleanest with no other pre-tax IRA balances, because the IRS pro-rata rule taxes conversions proportionally when pre-tax money exists.
Should I roll my old 401(k) into an IRA?
Usually yes. An IRA rollover gives you unlimited investment choices and often lower fees than an old employer plan, with no tax bill if you do a direct trustee-to-trustee transfer. The main reason to leave money in a 401(k) is the rule of 55, which lets you withdraw penalty-free if you leave your job at 55 or later, a protection IRAs do not offer.