Roth vs. Traditional IRA
Which account wins depends entirely on your tax rates now vs. in retirement. This calculator runs both scenarios with federal and state taxes included.
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Current Tax Rates
%
%
Retirement Tax Rates
%
%
Additional Factors
Roth: After-Tax Withdrawal
$711,650
100% tax-free at withdrawal
Traditional: After-Tax Withdrawal
$555,087
After 22% retirement tax
Tax Savings Now (Traditional)
$56,700
27% deduction × 7,000 × 30 yrs
Break-Even Retirement Rate
0.0%
Roth wins above this, Traditional below
Full Comparison
Roth IRA
After-tax contribution cost
$210,000
Tax savings now
$0 (no deduction)
Balance before withdrawal
$711,650
Tax at withdrawal
$0 (tax-free)
Net withdrawal value
$711,650
RMDs required
No
Traditional IRA
After-tax contribution cost
$153,300
Tax savings now
$56,700
Balance before withdrawal
$711,650
Tax at withdrawal (22%)
$156,563
Net withdrawal value
$555,087
RMDs required
Yes, starting age 73
Roth wins because your retirement tax rate (22%) is higher than or equal to your current rate (27%). Pay taxes now at the lower rate, never again.