Personal Finance

Roth vs Traditional IRA

Roth IRA contributions are post-tax; Traditional IRA contributions are pre-tax (deducted now, taxed on withdrawal). The better choice depends on your current vs retirement tax rate. If you expect to be in a higher bracket later, Roth usually wins.

Annual Contribution ($)

Years Until Retirement

Annual Return (%)

Current Tax Rate (%)

Retirement Tax Rate (%)

ROTH IRA

$—

After-tax value

TRADITIONAL IRA

$—

After-tax value