CALCULATOR
Roth IRA vs Traditional IRA Comparator
Same contribution limit. Very different tax treatment. The right choice depends on whether you pay taxes now or later - and which rate is higher.
Not financial advice. Consult a tax professional for your specific situation.
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Why This Matters
Roth IRA: You contribute after-tax dollars. Your money grows tax-free, and withdrawals in retirement are completely tax-free. Best if you expect to be in a higher tax bracket at retirement than you are now.
Traditional IRA: You contribute pre-tax dollars (may be deductible). You defer taxes until withdrawal. Best if you expect to be in a lower bracket at retirement - you get the tax break now when it's worth more.
It comes down to one question: is your tax rate higher now or in retirement? Tax rate drops in retirement - Traditional wins. Stays flat or rises - Roth wins. Most early-career earners do better with Roth. High earners near their peak years usually get more value from the Traditional deduction now.
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