How to use this calculator
- Enter your income, filing status and state tax rate to find your rate today.
- Enter the yearly pre-tax amount, the years until withdrawal and a return.
- Set the tax rate you expect to pay on withdrawals in retirement.
Frequently asked questions
Should I choose Roth or traditional?
Compare your tax rate now with your expected rate when you withdraw. If it will be lower later, traditional usually wins; if higher, Roth wins. In the example ($90,000 income, single, 26% now and 15% later), traditional comes out $83,385 ahead after 30 years.
What if taxes go up in the future?
Then Roth looks better. With a retirement rate of 31% — 5 points above today — Roth would be ahead by $37,902.
Why does the Roth side contribute less?
To keep the comparison fair. A traditional contribution lowers your taxes today, so contributing the same pre-tax amount costs your paycheck less. The Roth side puts in only what that same paycheck cost buys after tax.
What if I contribute the maximum?
The limit is the same dollar amount for Roth and traditional, so a maxed-out Roth shelters more after-tax money. That gives Roth an edge for people who max out.