IRA Calculator
Project your IRA balance at retirement for Traditional or Roth accounts. Compare after-tax values to make the best choice.
Traditional IRA vs Roth IRA
The IRA is one of the most flexible retirement savings vehicles available. Both Traditional and Roth IRAs offer tax-advantaged growth, but they differ in when you get the tax benefit.
With a Traditional IRA, contributions may be tax-deductible, reducing your taxable income today. Your investments grow tax-deferred, and you pay ordinary income tax when you withdraw in retirement. This is beneficial if you expect your tax rate to be lower in retirement than it is now.
A Roth IRA uses after-tax dollars, providing no immediate deduction. But your investments grow completely tax-free, and qualified withdrawals in retirement are entirely tax-free. This is particularly powerful for younger investors who have decades of tax-free compounding ahead of them.
For 2026, the contribution limit is $7,000 ($8,000 if age 50+). Both types can hold stocks, bonds, ETFs, mutual funds, and other investments — the tax treatment is the only difference.