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Roth vs. traditional

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Should you pay tax now with a Roth, or later with a traditional 401(k) or IRA? Compare what you keep after taxes.

How this calculator works

With a traditional account, your contributions skip income tax today and your withdrawals are taxed in retirement. With a Roth account, you pay tax on the money first, and qualified withdrawals, including all the growth, are tax-free. If your tax rate is the same now and in retirement, both come out exactly equal. Traditional wins if your rate will be lower in retirement, and Roth wins if it will be higher. Roth accounts also have no required minimum distributions, while traditional accounts do.

Related calculators

Investment projectionSee how your current savings and monthly investing grow with compound returns, year by year from your start age to age 100.Retirement plannerWill your savings last to age 100? Compare your savings and income with your monthly expenses, and see how long the money lasts and what return you need.

Disclaimer: This page is for education only and is not investment advice. Returns are not guaranteed, past market performance does not predict future results, and investments can lose value. Consider talking with a licensed financial professional before investing.

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