IRA Calculator

Compare Traditional IRA (upfront tax deduction) against Roth IRA (tax-free retirement withdrawals) based on current vs future tax brackets.

Calculator Inputs

%
Your tax bracket today.
%
Expected bracket in retirement.
$
Annual deposit.
yrs
Investment horizon.

Calculated Results

Recommended Account Choice
Roth IRA (Yields +$38,400 more in retirement)
Projected Roth IRA Balance $465,000.00 (Tax-Free)
Projected Traditional IRA Net $426,600.00 (After-Tax)
Annual Upfront Tax Deduction $1,540.00 / yr
Values calculate live as you adjust inputs.

About IRA Calculator

Evaluates tax optimization: deducting contributions today (Traditional IRA) versus paying taxes today to withdraw 100% tax-free in retirement (Roth IRA).

What is IRA Calculator?

Evaluates tax optimization: deducting contributions today (Traditional IRA) versus paying taxes today to withdraw 100% tax-free in retirement (Roth IRA).

How to Use This Calculator

  1. Enter current tax bracket and expected retirement tax bracket.
  2. Enter annual contribution and horizon in years.
  3. Review side-by-side comparison.

The Mathematical Formula & Variables

Compare (1 - Tax_today) vs (1 - Tax_future) to identify optimal IRA structure

Step-by-Step Worked Example

Scenario: Current tax bracket 22%, expected retirement bracket 24% over 25 years.

  1. Paying 22% now is cheaper than paying 24% in retirement.
  2. Roth IRA wins because tax rate is lower today than in retirement.

Result: Roth IRA Recommended

Frequently Asked Questions

What is the golden rule for choosing Roth vs Traditional?

If you expect your tax bracket to be higher in retirement, choose Roth. If you expect your tax bracket to be lower in retirement, choose Traditional.