Evaluate whether a Traditional or Roth IRA is better for your situation. Compare pre-tax vs after-tax contributions, see projected balances at retirement, and understand the tax impact based on your current and expected retirement tax brackets.
An Individual Retirement Account (IRA) is a tax-advantaged personal retirement account — separate from any 401(k) at work — that lets you set aside money for retirement and either skip the tax now (Traditional) or skip it later (Roth). For 2025, the contribution limit is $7,000 per year ($8,000 if you're 50 or older). Even modest annual contributions to an IRA, started early, can grow into a six-figure or seven-figure retirement asset.
The choice between Traditional and Roth comes down to one comparison: your marginal tax rate today versus your expected marginal tax rate in retirement. If your retirement rate will be lower, the Traditional deduction now is worth more than the Roth tax-free withdrawal later. If your retirement rate will be higher — or rates rise in general — the Roth wins. The math is exactly identical if rates don't change, which is why so many planners recommend doing some of each.
This calculator projects your IRA balance at retirement using your current balance, annual contributions, expected return, and time horizon, then shows the after-tax result under either Traditional or Roth treatment. The biggest input is time: starting at 25 vs 35 typically doubles the eventual balance for the same monthly contribution.
Age 30, retiring at 65. $7,000/year contributions, 7% return, current balance $0. Year 35 balance: $7,000 × [(1.07^35 − 1) / 0.07] ≈ $968,000 If Roth: $968,000 tax-free at retirement. If Traditional and the future rate is 22%: $968,000 × 0.78 ≈ $755,000 after tax. The Roth wins by $213,000 — assuming the worker's current marginal rate is lower (e.g., 12%) than the future rate. Early-career low brackets are when Roth pays off most.
Age 45, retiring at 65. Current balance $50,000. $7,000/year contributions, 7% return. Year 20 future value: 50,000 × 1.07^20 + 7,000 × [(1.07^20 − 1) / 0.07] = 193,500 + 287,000 ≈ $480,500 Traditional, retirement rate 18%: $480,500 × 0.82 ≈ $394,000 after tax. Roth, no tax owed: $480,500. But: the Traditional path also gave a $7,000 × 32% = $2,240 tax savings each year for 20 years ($44,800 total), which (if invested in a taxable account) could grow to roughly $80,000–$95,000 after taxes. Total Traditional path: ≈ $474,000–$489,000 after tax. Almost identical to Roth — which is why mid-career savers often do both.
Age 50, retiring at 67. Current balance $200,000. $8,000/year contributions (including $1,000 catch-up), 7% return. Year 17 future value: 200,000 × 1.07^17 + 8,000 × [(1.07^17 − 1) / 0.07] = 630,800 + 247,400 ≈ $878,200 The catch-up contribution adds about $30,000 to the final balance vs. the $7,000 base limit — meaningful but the existing $200,000 dominates. Anyone over 50 still has 17–20 productive years of compounding ahead and should not skip IRA contributions just because retirement is "close."
Use this calculator when deciding whether to open an IRA, which type to contribute to, or how much to contribute each year. It's especially valuable when comparing IRA contributions to other priorities (paying down debt, employer 401(k) match, taxable brokerage), because the after-tax future value lets you compare on equivalent terms.
For most workers, the priority order is: (1) capture the full employer 401(k) match (free money), (2) max the IRA ($7,000/$8,000) — usually Roth if you're in a low bracket, (3) continue 401(k) contributions toward the $23,500 limit, (4) HSA if eligible (uniquely triple tax-advantaged), (5) backdoor Roth if income is too high for direct Roth, (6) taxable brokerage. The IRA fits early in the stack because it's the most flexible account (any custodian, any investment choice).
Pair this with the 401(k) calculator (different limits, different employer-match dynamics), the retirement-savings calculator (whole-portfolio view), and the Roth-vs-Traditional calculator (dedicated tool for that specific comparison). For families above the Roth IRA income limit ($165K single / $246K married in 2025), look into the backdoor Roth conversion strategy.
Estimate your 401(k) balance at retirement with employer matching and investment growth.
Project your retirement savings growth and see if you are on track.
Calculate your Required Minimum Distribution from retirement accounts.
Estimate your Social Security benefits based on when you start claiming.
Compare Roth and Traditional IRA/401(k) to see which is better for you.
Calculate annuity payments from a lump sum or how much to invest for desired payments.
Traditional (Pre-Tax)
$1,127,807
Traditional (After Tax)
$958,636
Roth (Tax-Free)
$914,922
Recommendation
Both options are similar
| Age | Traditional | Roth | Cumulative Tax Savings |
|---|---|---|---|
| 31 | $23,050.00 | $21,510.00 | $1,540.00 |
| 32 | $31,663.50 | $28,475.70 | $3,080.00 |
| 33 | $40,879.95 | $35,929.00 | $4,620.00 |
| 34 | $50,741.54 | $43,904.03 | $6,160.00 |
| 35 | $61,293.45 | $52,437.31 | $7,700.00 |
| 36 | $72,583.99 | $61,567.92 | $9,240.00 |
| 37 | $84,664.87 | $71,337.68 | $10,780.00 |
| 38 | $97,591.41 | $81,791.31 | $12,320.00 |
| 39 | $111,422.81 | $92,976.71 | $13,860.00 |
| 40 | $126,222.41 | $104,945.08 | $15,400.00 |
| 41 | $142,057.97 | $117,751.23 | $16,940.00 |
| 42 | $159,002.03 | $131,453.82 | $18,480.00 |