Roth vs Traditional IRA Calculator 2026

Q: What is the 2026 IRA contribution limit?

The 2026 IRA contribution limit is $7,500, with a $1,100 catch-up for age 50+, for a total of $8,600 when eligible.

Q: What is the difference between Roth and Traditional IRA?

Traditional IRA contributions may be tax-deductible now and withdrawals are taxed in retirement. Roth IRA contributions are after-tax now and qualified withdrawals are tax-free. The better choice depends on current vs. expected future tax rate.

Q: When is a Roth IRA better?

A Roth often wins when you expect to be in a higher tax bracket in retirement, when you have many years for tax-free growth, or when you want to avoid required minimum distributions.

Q: When is a Traditional IRA better?

A Traditional IRA often wins when you are in a high tax bracket now and expect a lower one in retirement, because the upfront deduction is worth more at the higher rate.

Published: June 14, 2026 · Updated: June 16, 2026 · Maintained by: WealthScope Hub Editorial Team

How this calculator works

This simplified calculator grows the same contribution under Roth and Traditional assumptions. Roth withdrawals are modeled as tax-free. Traditional withdrawals are reduced by the retirement tax rate you enter.

2026 limits used

The calculator uses a 2026 IRA contribution limit of $7,500 and a $1,100 catch-up amount for age 50+, for a total of $8,600 when eligible.

The formula

Roth future value = contribution × (1 + return rate)^years — withdrawn tax-free.

Traditional after-tax value = future value × (1 − retirement tax rate) — taxed on withdrawal.

The "current tax savings" line shows the upfront deduction value of a Traditional contribution at your current rate.

How to read the result

If Roth future value is higher, you come out ahead paying tax now. If Traditional after-tax value is higher, deferring tax wins. The single biggest driver is usually the gap between your current and expected retirement tax rate — try a few combinations to see how sensitive the result is.

The core trade-off: tax rate now vs. later

Both accounts grow tax-advantaged; the real question is when you pay income tax. The rule of thumb:

Expect a lower bracket in retirement? Traditional's upfront deduction is worth more now.
Expect a higher bracket in retirement? Roth's tax-free withdrawal wins.
Unsure? Many people hold both account types to hedge against future tax changes — this is called tax diversification.

Things this calculator does not model

To stay transparent, this tool ignores real-world complications. Before acting, also consider:

Income limits on Roth eligibility and Traditional deductibility (phaseouts).
Required minimum distributions (Traditional has them; Roth does not).
State taxes, early-withdrawal rules, and the 5-year Roth rule.
What you would do with the upfront Traditional deduction (investing it changes the math).

Related tools & guides

Full comparison: Roth IRA vs Traditional IRA in plain English.
Workplace plan: 401(k) Contribution Calculator.

Frequently asked questions

What is the 2026 IRA contribution limit?

$7,500, plus a $1,100 catch-up at age 50+ ($8,600 total when eligible).

What is the difference between Roth and Traditional IRA?

Traditional may be deductible now and is taxed on withdrawal; Roth is after-tax now and tax-free on withdrawal.

When is a Roth IRA better?

Often when you expect a higher retirement tax bracket, have a long horizon, or want to avoid RMDs.

When is a Traditional IRA better?

Often when you're in a high bracket now and expect a lower one in retirement.

Important note

This tool does not determine eligibility, deductibility, income phaseouts, early withdrawal rules, required minimum distributions, state taxes, or how you invest current-year tax savings. This page provides educational estimates only and is not financial, investment, tax, legal, accounting, or retirement advice. See our disclaimer.