Roth vs Traditional IRA

Should you pay taxes now or later? Discover which retirement account will leave you with the most after-tax wealth.

Your Projection


Tax Assumptions

The Winner

Traditional IRA

Wins by $13,225 of after-tax wealth.

Equal Out-Of-Pocket Breakdown

Roth IRA
Actual Annual Investment
$5,320
(After 24% taxes)
After-Tax Balance
$502,531
Traditional IRA
Actual Annual Investment
$7,000
(Pre-tax, $0 paid now)
After-Tax Balance
$515,756

The Rule of Thumb: If you expect your tax rate to be higher in retirement (usually true for young/low-income workers), go Roth. If you expect your tax rate to be lower in retirement (usually true for peak-earning older workers), go Traditional.

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