Roth vs Traditional Calculator
Roth vs Traditional Calculator
Pay tax now, or pay tax later?
Traditional: after-tax value at withdrawal
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Roth: after-tax value at withdrawal
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Both, in today's money
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Traditional vs Roth, inflation-adjusted
Traditional vs Roth, after tax
The assumption it hinges on
Compares the same pre-tax dollar amount either way: Traditional invests it all pre-tax and pays tax on the full grown amount at withdrawal; Roth pays tax on it today (at your current rate) and invests what is left, tax-free at withdrawal. Mathematically, if your tax rate is the same both now and in retirement, the two are identical -- the deciding factor is really whether you expect your tax rate to be higher or lower in retirement than it is today, which nobody can know for certain.
Frequently asked questions
How much do I actually need to retire comfortably?
It depends on your expected retirement expenses, Social Security benefit, and life expectancy -- there's no single universal number, though rules of thumb like "25x annual expenses" are a common starting point. This calculator lets you build a more specific estimate from your own numbers.Read more: Roth vs Traditional Calculator: Pay Tax Now or Pay Tax Later?
What's the difference between a 401(k) and an IRA?
A 401(k) is employer-sponsored, often with an employer match, and has a higher annual contribution limit. An IRA is opened independently at a brokerage, with a lower contribution limit but typically far more investment choice. Many people contribute to both -- a 401(k) up to the employer match, then an IRA.Read more: A Tax Break Now, a Bill Later — and When That’s the Smart Trade
When should I claim Social Security -- 62, 67, or 70?
Claiming at 62 gives a permanently reduced benefit; waiting until your full retirement age (typically 66-67) gives the full benefit; waiting until 70 gives the maximum benefit, growing roughly 8% per year you delay past full retirement age. The right age depends on your health, other income, and whether you need the money sooner.Read more: Pay Tax Now or Pay Tax Later: The Only Question That Matters
How does inflation affect my retirement savings?
Inflation erodes purchasing power both before and during retirement, so a nominal dollar figure that looks sufficient today can fall short decades from now. This calculator shows results in both nominal and inflation-adjusted terms so you're not planning around a number that quietly loses value.Read more: Social Security Estimator: Why Claiming Age Changes Everything
Estimates only, not financial advice. See our Disclaimer.
