Highest modeled comparable after-tax value
Traditional IRAThe traditional-plus-reinvested-tax-savings path is about $1,636.91 higher in this comparable after-tax scenario.
SwitchWize decision guide
Roth IRA vs. traditional IRA: compare taxes now and later
A fair comparison must account for deduction eligibility and what happens to current tax savings—not just apply a future tax rate to equal deposits.
What you can expect
- No login required
- No credit pull
- Assumptions shown
- Sources included
Quick answer
Roth tends to improve as future tax rates rise; deductible traditional improves when today’s tax savings are real and actually reinvested.
If roth ira
Best when eligible and future tax-free qualified withdrawals or no owner lifetime RMDs are valuable.
If traditional ira
Best when the contribution is deductible, today’s rate is higher and tax savings are reinvested.
Key number to watch
The comparable-value boundary is about a 22.3% retirement tax rate under the entered reinvestment assumptions.
Test your situation
See your result in dollars
Change any number below to match your situation. No login is required, and your entries stay in this browser.
$
Combined 2026 IRA limit is $7,500, or $8,600 at 50+.
years
Contribution horizon.
%
Same hypothetical return inside both accounts.
%
Rate applied to a deductible contribution.
%
Scenario rate on traditional withdrawals.
Eligibility depends on workplace coverage, filing status and income.
The traditional-plus-reinvested-tax-savings path is about $1,636.91 higher in this comparable after-tax scenario.
Roth IRA
$474,368
modeled qualified after-tax value
Traditional IRA
$476,005
modeled comparable after-tax value
Try a scenario
Key number to watch
The comparable-value boundary is about a 22.3% retirement tax rate under the entered reinvestment assumptions.
How certain: scenario dependent
Check these assumptions
- • This is an educational federal-tax scenario, not tax advice. State taxes, credits, early-withdrawal penalties, ordering rules and legislative changes are not modeled.
What matters most
Current-year tax deduction
Traditional IRAThe entered scenario treats the traditional contribution as deductible.
No lifetime owner RMDs
Roth IRAUnder current federal rules, Roth IRA owners do not take lifetime required minimum distributions; beneficiaries have separate rules.
Tax diversification
dependsHolding both pre-tax and Roth assets can preserve choices when future tax rates and income are uncertain.
Side-by-side comparison
Contribution deduction
- Roth IRA
- No
- Traditional IRA
- Maybe
Qualified withdrawal
- Roth IRA
- Generally tax-free
- Traditional IRA
- Generally taxable
Owner lifetime RMD
- Roth IRA
- None under current rules
- Traditional IRA
- Generally begins at applicable age
Income constraints
- Roth IRA
- Direct contribution phases out
- Traditional IRA
- Deduction can phase out
What could go wrong
Roth IRA
- What needs to work
- Contribution and withdrawal rules are met.
- Common problem
- Ignoring eligibility or qualified-distribution rules.
- What it could cost
- Tax or penalty surprises.
- How to prepare
- Recharacterization rules and deadlines are limited.
Traditional IRA
- What needs to work
- Deduction exists and tax savings are used well.
- Common problem
- Assuming a deduction or spending the savings.
- What it could cost
- Taxable withdrawals and RMD effects.
- How to prepare
- Conversions can create current taxable income.
A simple backup plan
Diversify future tax choices
Using both account types reduces reliance on one future-rate forecast.
- 1Confirm direct-contribution and deduction eligibility.
- 2Compare using equivalent pre-tax resources.
- 3Coordinate IRA choices with workplace accounts and future withdrawal plans.
Educational illustration only. The right amount depends on your needs and timing.
What to do next
Question 1
Is the traditional contribution deductible?
Yes: Include and reinvest the tax savings.
No: The Roth may compare more favorably if eligible.
Question 2
Do you expect a higher future marginal rate?
Yes: Roth becomes more attractive.
No: Traditional may benefit from a current deduction.
Question 3
Is one tax forecast highly uncertain?
Yes: Consider a split for diversification.
No: Use the comparable after-tax result as one input.
Plain-text decision tree. Is the traditional contribution deductible? If yes, Include and reinvest the tax savings. If no, The Roth may compare more favorably if eligible. Do you expect a higher future marginal rate? If yes, Roth becomes more attractive. If no, Traditional may benefit from a current deduction. Is one tax forecast highly uncertain? If yes, Consider a split for diversification. If no, Use the comparable after-tax result as one input.
When to check again
- Income or filing status changes.
- Workplace-plan coverage changes.
- Congress changes IRA rules.
- Your expected retirement bracket changes.
- You reach an RMD planning milestone.
Methodology
Both IRAs use the same hypothetical growth. Traditional value is reduced by entered withdrawal tax and adds reinvested current tax savings only when selected.
2026 contribution limits come from IRS guidance; tax rates and eligibility are user-entered.
- • State taxes and detailed distribution rules are excluded.
- • Eligibility is not inferred from income.
- • Returns and future tax law are uncertain.
IRS limits and rules are reviewed annually and after legislation. Editorial conclusions do not depend on affiliate availability.
Sources
IRS — IRA Contribution LimitsChecked July 21, 2026 · high confidence
2026 combined limit and compensation cap.
IRS — Traditional and Roth IRAsChecked July 21, 2026 · high confidence
Deduction and distribution distinctions.
IRS — Required Minimum DistributionsChecked July 21, 2026 · high confidence
Traditional IRA and Roth-owner RMD treatment.
Frequently asked questions
What is the 2026 IRA limit?
The combined traditional and Roth IRA limit is $7,500, or $8,600 at age 50 or older, limited by taxable compensation.
Can I deduct a traditional IRA contribution?
Maybe. Workplace coverage, filing status and income can limit the deduction.
Are Roth withdrawals always tax-free?
No. Qualified-distribution rules must be met.
Does a Roth IRA have lifetime RMDs?
The original owner does not under current federal rules; beneficiary rules differ.
Why reinvest the tax savings?
It makes equal-contribution comparisons closer to equal pre-tax economic resources.
Can I contribute to both?
Yes if eligible, but the annual limit is shared across traditional and Roth IRAs.