Tax Strategy Calculator
Roth vs Traditional
Should you pay taxes now or later? The answer depends on your tax bracket today vs in retirement.
Your Scenario
Your marginal tax rate today
Your expected tax rate when withdrawing
Traditional IRA wins by $76,248
Traditional wins because you'll pay less in taxes later than you would now. Defer taxes and let that money grow.
That's 12.8% more after-tax money in retirement.
Traditional IRA
Balance at retirement
$762,482
After taxes (12%)
$670,984
Tax savings upfront
$49,500
Roth IRA
Balance at retirement
$594,736
After taxes (tax-free!)
$594,736
Taxes paid upfront
$49,500
The Rule of Thumb
Choose Roth if: You're early in your career (lower tax bracket now) or expect to be in a higher bracket later
Choose Traditional if: You're in your peak earning years (high tax bracket) and expect lower income in retirement
Not sure? Do both — split your contributions between Roth and Traditional for tax diversification
Remember: This calculator assumes tax rates stay constant. In reality, tax laws change. The key insight is understanding whether you're paying taxes on the seed (Roth) or the harvest (Traditional) — and which one costs you less.