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IRA Calculator

Traditional vs. Roth IRA — compare after‑tax retirement income.

Current Age years

Retirement Age years

Current IRA Balance $

Annual Pre‑tax Contribution $

Expected Return % per year

Marginal Tax Rate Now %

Expected Tax Rate at Retirement %

Understanding IRAs: Traditional vs. Roth

Individual Retirement Accounts (IRAs) are powerful tools for building retirement savings with tax advantages. The two most common types are the Traditional IRA and the Roth IRA. Choosing the right one depends on your current tax situation, expected future income, and retirement goals.

Traditional IRA at a glance

• Contributions may be tax‑deductible in the year you make them (if you meet income limits).
• Investment growth is tax‑deferred — you pay no taxes on gains until you withdraw.
• Withdrawals in retirement are taxed as ordinary income.
• Required Minimum Distributions (RMDs) begin at age 73 (as of 2025).

Roth IRA at a glance

• Contributions are made with after‑tax dollars — no deduction today.
• Growth is tax‑free, and qualified withdrawals in retirement are completely tax‑free.
• No RMDs during the original owner's lifetime, offering more flexibility.
• Income limits apply for direct contributions, but backdoor Roth strategies may be an option.

IRA Contribution Limits (2025)

For 2025, the maximum annual IRA contribution is $7,000 (or $8,000 if you are age 50 or over). These limits apply to the total of all your Traditional and Roth IRA contributions combined.

How to use this calculator

1. Enter your current age and the age you plan to retire.
2. Add any existing IRA balance.
3. Set your annual pre‑tax contribution — this is the amount you could afford to save from your gross income.
4. Estimate your expected investment return (a 6–8% range is typical for long‑term stock market returns).
5. Input your marginal tax rate today and your best guess for your tax rate in retirement.
6. The calculator instantly compares the after‑tax retirement income from both account types, using the same out‑of‑pocket cost.

⚠️ Disclaimer: This calculator provides estimates for educational purposes only. It does not constitute financial advice. Tax laws and contribution limits may change; consult a qualified tax advisor or financial planner before making decisions.