Traditional vs Roth IRA Calculator
Compare Traditional IRA (deduction now, tax later) versus Roth IRA (no deduction, tax-free later) for your situation in 2026.
2026 limit: $7,000 ($8,000 if age 50+).
Used for Roth and Traditional phase-out checks.
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How to use
- 1 Enter your annual contribution (max $7,500 for 2026, plus $1,100 catch-up if 50+).
- 2 Enter your current marginal tax rate (10/12/22/24/32/35/37%) — applies to Traditional deduction.
- 3 Enter your projected retirement tax rate (often lower if income drops, but state tax may rise if relocating).
- 4 Enter expected annual return (S&P 500 historical: ~10% nominal; conservative balanced portfolio: 6-7%) and years until withdrawal.
- 5 Click Calculate to see future after-tax balance for both Traditional and Roth — the higher number wins.
About Traditional vs Roth IRA Calculator
FAQ
Q Should I contribute to Roth or Traditional IRA?
Generally Roth if you're in 10-22% bracket; Traditional if 32-37%; either way works in 24%. The key question: will your tax rate be higher now or in retirement? Most middle-class workers benefit from Roth, especially when young and in lower brackets, locking in tax-free growth for decades.
Q What is the IRA contribution limit for 2026?
$7,500 for those under 50, plus $1,100 catch-up for age 50+. Both Traditional and Roth share the same limit. Self-employed SEP IRA: 25% of net self-employment income up to $77,000. SIMPLE IRA: $17,000 ($20,000 catch-up). 401(k) is separate and has higher limits.
Q Can high earners contribute to Roth IRA?
Direct Roth contributions phase out for single filers between $150K-$165K MAGI in 2026 ($236K-$246K MFJ). Above the phase-out, use the Backdoor Roth IRA: contribute non-deductible Traditional, then convert to Roth. Legal and IRS-blessed, but requires no other pre-tax IRA balances (pro-rata rule).
Q When can I withdraw from my IRA without penalty?
Generally age 59½. Earlier withdrawals trigger 10% penalty on top of income tax (Traditional) or income tax on earnings (Roth). Exceptions: first-time home purchase ($10K lifetime), qualified education expenses, medical expenses over 7.5% of AGI, disability, substantially equal periodic payments (Rule 72(t)).
Q Do I have to take Required Minimum Distributions (RMDs)?
Traditional IRA: yes, starting age 73 (under SECURE 2.0). Roth IRA: no — Roth grows tax-free indefinitely for you (RMDs start for inherited Roth IRAs). This RMD-free feature is a major Roth advantage for estate planning and tax management in retirement.
Q Can I have both a 401(k) and an IRA?
Yes, simultaneously. 401(k) limits are separate from IRA limits — 2026 401(k) is $24,500 base + $8,000 catch-up. So a worker over 50 can contribute up to $32,500 to 401(k) plus $8,600 to IRA = $41,100 tax-advantaged. Best practice: 401(k) match first, max Roth IRA, then back to 401(k).
Q What is a Roth conversion?
Moving money from Traditional IRA to Roth IRA — paying ordinary income tax on the converted amount now in exchange for tax-free growth and withdrawals later. Common in low-income years (sabbatical, early retirement before claiming Social Security) to fill lower tax brackets. No income limit on Roth conversions.
Q Can my spouse contribute to an IRA if they don't work?
Yes — Spousal IRA. As long as one spouse has earned income equal to or greater than the combined contributions, both can contribute up to $7,500 each ($8,600 if 50+). Common in single-earner households. Married filing jointly required. Roth income phase-outs apply to both spouses on combined income.
Official resources
IRS Publication 590-A — IRA Contributions
Authoritative IRS rules on IRA contributions, deductibility, and Roth income limits.
IRS Publication 590-B — IRA Distributions
IRS rules on IRA withdrawals, age 59½ penalty, RMDs, and inherited IRAs.
IRS — IRA Contribution Limits
IRS current contribution limits and phase-out thresholds.
Bogleheads — IRA Wiki
Bogleheads investment philosophy IRA reference, including Backdoor Roth IRA explanation.