Roth or Traditional? Let the numbers decide.

Not necessarily. Being young means more years of tax-free Roth growth, and early-career tax rates are often low, which favors Roth. But if your tax rate in retirement ends up lower than the rate you'd save today, a deductible Traditional IRA can still come out ahead. The comparison depends on the two tax rates far more than on age alone.

Their relationship matters most. With an equal after-tax budget and no contribution limit in the way, a Traditional IRA wins when your retirement withdrawal rate is lower than your tax savings rate today, and Roth wins when it is higher. Contribution limits, taxable-account taxes, and partial deductibility shift the break-even point, which is why the calculator solves for it.

Yes. Direct Roth IRA contributions phase out at higher modified AGI. Traditional IRA contributions are always allowed if you have taxable compensation, but the deduction phases out at higher income when you or your spouse are covered by a workplace retirement plan.

401(k) plans have their own, separate limits and rules, and this site doesn't model them. Being covered by a 401(k) can limit how much of a Traditional IRA contribution you can deduct, which the Detailed comparison accounts for. You can still contribute to an IRA in addition to a 401(k).

Yes, but they share one annual limit. For 2026, your combined Roth and Traditional IRA contributions can't exceed $7,500 ($8,600 if you're 50 or older), or your taxable compensation if that's less.

In this calculator, savings beyond the IRA limit go to an ordinary taxable brokerage account, where dividends are taxed each year and gains are taxed when sold. When the limit is binding, Roth often gains an edge because each Roth dollar is already after tax, so the same limit shelters more of your savings.

Higher tax rates on retirement withdrawals favor Roth. Use the retirement tax sensitivity chart and the break-even rate to see how high your withdrawal rate would need to be for the result to flip.

To compare the strategies fairly, both must use the same after-tax budget. A deductible Traditional contribution saves tax today, and that savings has to go somewhere. It's invested in a taxable account, along with any money that doesn't fit under the IRA limit. Ignoring it would understate the Traditional strategy.

A backdoor Roth is a nondeductible Traditional IRA contribution followed by a conversion to a Roth IRA, used by people whose income is too high for direct Roth contributions. Conversions have their own tax rules, including the pro-rata rule, and are out of scope for this version. The calculator doesn't treat a backdoor Roth as a direct Roth contribution.

Generally, yes. Your regular Roth contributions (not earnings) can be withdrawn at any time without tax or penalty. Withdrawing earnings before age 59½, or before the account has been open five years, can trigger tax and a 10% penalty unless an exception applies. Early withdrawals aren't modeled here.