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Traditional vs. Roth vs. Taxable Brokerage Calculator

See the after-tax ending value of saving the same dollars in a Traditional account, a Roth account, or a taxable brokerage account, including an adjustment for the bracket creep a large Traditional balance's Required Minimum Distributions can cause.

Quick answer: Traditional accounts defer tax until withdrawal, Roth accounts tax contributions now for tax-free withdrawals, and taxable brokerage accounts offer no contribution limit or required distributions but pay capital-gains tax. The better mix depends on current versus expected future tax rates and account-size-driven RMD risk.

SWReviewed by SwitchWize Research Desk · Last reviewed August 22, 2026
Roth Account: After-Tax Ending Value
$614,932
Roth Account: After-Tax Ending Value
$614,932
Traditional's Effective Withdrawal Rate
25.00%
Traditional Account: After-Tax Ending Value
$461,199
Taxable Brokerage: After-Tax Ending Value
$552,538
Same dollars three tax treatments
Roth Minus Traditional
$153,733
Roth Minus Taxable Brokerage
$62,395
Traditional Minus Taxable Brokerage
-$91,339
Spread Between Best and Worst Path
$153,733
Illustrative Current-Year Traditional Tax Savings
$3,600
Diagnostic

Saving the same $15,000 a year for 20 years, the estimated after-tax ending value is $461,199 in a Traditional account, $614,932 in a Roth account, and $552,538 in a taxable brokerage account.

The 3-point bracket-creep adjustment you entered pushes Traditional's effective withdrawal rate to 25.00%. A large balance can force bigger required distributions than expected. Use the RMD Planner and Medicare IRMAA Planner to size that more precisely.

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Same dollars, three outcomes: $461,199 Traditional, $614,932 Roth, $552,538 taxable brokerage after 20 years.

What to do next

Under these assumptions, Roth comes out ahead. Re-run this with your actual expected retirement tax rate and bracket-creep risk before committing new savings.

Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare the after-tax ending value of saving the same annual dollars in a Traditional account, a Roth account, or a taxable brokerage account, including a bracket-creep adjustment for oversized traditional balances that trigger larger RMDs.

  2. 2

    Check the assumptions before using the result for a high-stakes decision

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Use the linked guide or product page for the next step

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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Frequently Asked Questions

Everything you need to know.

Why compare three accounts instead of two?
Traditional-vs-Roth comparisons are common, but they leave out taxable brokerage accounts, which have no contribution limits, no Required Minimum Distributions, and preferential capital-gains tax treatment. For savers already maxing tax-advantaged accounts, or weighing where to put money beyond them, the three-way comparison is the more complete question.
What is the bracket-creep adjustment for?
A large Traditional balance can force bigger Required Minimum Distributions than a saver expects, pushing ordinary income into a higher bracket and potentially triggering Medicare IRMAA surcharges. This input lets you add estimated extra percentage points to Traditional's effective withdrawal rate; use the RMD Planner and Medicare IRMAA Planner for a precise, balance-specific figure.
Does this account for the Traditional tax deduction today?
It shows the current-year tax savings as a separate, informational figure, but does not reinvest it in the comparison. All three paths assume the same gross dollar amount is contributed, the same simplified convention used by SwitchWize's other Traditional-vs-Roth calculators.
Is the Traditional vs. Roth vs. Taxable Brokerage Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Traditional vs. Roth vs. Taxable Brokerage Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare top brokerage & ira accounts, or run Money Map to compare this investing & retirement decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (brokerage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
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Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Savers with most of their retirement money in traditional 401(k)s and IRAs can face outsized Required Minimum Distributions starting at 73, taxed at ordinary rates and capable of pushing income into a higher bracket or triggering Medicare IRMAA surcharges than a flat withdrawal-rate assumption suggests. This tool puts all three main savings vehicles side by side, including that bracket-creep risk, rather than comparing only two at a time.

How to Use It

  1. 1Enter the annual amount you can save and your time horizon
  2. 2Set your current and expected retirement tax rates
  3. 3Add a bracket-creep adjustment if a large Traditional balance could push withdrawals into a higher bracket
  4. 4Compare the after-tax ending value across all three account types at once
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