IRA Calculator

Traditional IRA

Tax-deductible now, taxable withdrawals

Roth IRA

Taxed now, tax-free withdrawals

Compare Both

See side-by-side comparison

Your Financial Details

Current Age

35 years

Planned Retirement Age

65 years

Annual Income ($)

$75,000

Current Tax Rate (%)

22%

Retirement Tax Rate (%)

15%

IRA Contributions

Annual Contribution ($)

$6,500

Current IRA Balance ($)

Expected Annual Return (%)

IRA Projections

Traditional IRA Value At Retirement

Total account value after growth

Tax Deduction Savings Annual

Tax savings from contributions

After-Tax Value In Retirement

Value after withdrawal taxes

IRA Comparison

Traditional IRA

After-Tax Retirement Value

Annual Tax Savings

Tax-deferred growth

Roth IRA

Tax-Free Retirement Value

Annual Tax Cost

Tax-free growth

Difference

Traditional Advantage

Better Choice

Based on tax rates

Growth Comparison Over Time

Tax Impact Analysis

Factor	Traditional IRA	Roth IRA	Key Difference
Contribution Tax Treatment	Tax-deductible	After-tax	Traditional saves taxes now
Withdrawal Tax Treatment	Taxable as income	Tax-free	Roth saves taxes later
Required Minimum Distributions	Required at age 73	Not required	Roth offers more flexibility
Early Withdrawal Penalty	10% before 59½	10% on earnings	Similar penalty structure
Income Limits	No income limits for deductions	Income limits apply	Traditional more accessible

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Understanding Traditional vs Roth IRA

Traditional IRA: Contributions may be tax-deductible, reducing your current taxable income. Investments grow tax-deferred, but withdrawals in retirement are taxed as ordinary income. Required Minimum Distributions (RMDs) begin at age 73.

Roth IRA: Contributions are made with after-tax dollars (no current tax deduction). Investments grow tax-free, and qualified withdrawals in retirement are completely tax-free. No RMDs during your lifetime.

Which is Better? The choice depends on comparing your current tax rate with your expected retirement tax rate:

Choose Traditional IRA if your current tax rate is higher than your expected retirement tax rate
Choose Roth IRA if your current tax rate is lower than your expected retirement tax rate
Consider Both for tax diversification and flexibility

2024 Contribution Limits: $7,000 ($8,000 if age 50 or older). Income limits apply for Roth IRA contributions and Traditional IRA deductions.

Note: This calculator provides estimates only. Actual investment returns and tax rates may vary. Consult with a qualified financial advisor for personalized advice.