Roth vs. Traditional IRA: Key Tradeoffs
The Roth-versus-Traditional IRA decision combines current taxes, future taxes and eligibility rules. Tax deductibility and Roth contribution eligibility can depend on income and workplace-plan coverage.
Change the inputs and compare scenarios with the related RetirementMetric calculator.
Open the calculatorCompare after-tax outcomes
A fair comparison accounts for the tax deduction, if any, on a Traditional contribution and the after-tax dollars required to fund a Roth contribution.
Eligibility matters
Income limits and deduction rules change over time. Check current IRS rules rather than relying on an old threshold.
Think beyond the next tax return
The choice affects future withdrawal taxation and flexibility. Model the retirement tax picture, not just the immediate deduction.
How to use this number responsibly
Use the result as a planning range rather than a forecast. Re-run the calculation when your balance, contribution rate, debt, retirement date, tax situation or spending target changes. For investment projections, compare multiple return assumptions because future market returns are unknown.
What this calculator does not know
RetirementMetric does not know your complete tax situation, benefits, investment holdings, insurance needs or household expenses. The tools are educational estimates, not individualized investment, tax or legal advice.
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