IRA Calculator
$0.00 at retirement
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Traditional vs. Roth: The Real Difference Is When You Pay Tax
A Traditional IRA lets you contribute pre-tax dollars, which lowers your taxable income today, but every withdrawal in retirement is taxed as ordinary income. A Roth IRA works the opposite way: you contribute after-tax dollars now, but qualified withdrawals in retirement are completely tax-free. This calculator projects your balance growing tax-deferred either way, and shows both the upfront tax savings a Traditional IRA gives you today and the estimated after-tax value of your balance if it were withdrawn and taxed at your current rate — a simplified stand-in for comparing the two paths, since your actual retirement tax rate may differ from today's.
Contribution Limits Matter More Than People Think
The IRS caps how much you can contribute to an IRA each year (combined across Traditional and Roth accounts), and that limit is adjusted periodically for inflation, with a higher "catch-up" limit allowed once you turn 50. This calculator assumes you keep contributing the same annual amount every year until retirement; in reality, check the current-year IRS limit before assuming you can contribute more than it allows, and remember Roth IRA eligibility phases out at higher incomes.
Compare Contribution Strategies
If you're deciding how to split savings between an employer plan and an IRA, try the 401(k) calculator alongside this one. To model a Roth-specific contribution and withdrawal strategy in more detail, see the Roth IRA calculator.
Frequently Asked Questions
Should I choose a Traditional or Roth IRA in this calculator?
Pick Traditional if you want to deduct contributions now and pay tax on withdrawals later, or Roth if you'd rather pay tax on contributions now and withdraw tax-free in retirement. The calculator shows upfront tax savings for Traditional and an after-tax comparison so you can weigh both against your expected tax rate in retirement.
Why does the calculator assume the same contribution every year?
It's a simplifying assumption to make the projection easy to read. In practice your contributions may grow with income or be capped by the IRS annual limit, so treat the year-by-year table as an estimate and adjust the annual contribution figure periodically to reflect real changes or updated IRS limits.