Compare Traditional vs Roth IRA growth and see which saves more in lifetime taxes based on your current and retirement tax brackets. Updated for 2026 IRA contribution limits.
Traditional vs Roth — growth & lifetime tax comparison
| Factor | Traditional IRA | Roth IRA |
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The IRA calculator comparison depends almost entirely on one question: will your tax rate be higher now or during retirement? With a Traditional IRA, you deduct contributions now (at your current rate), let the money grow tax-deferred, and pay income tax on withdrawals in retirement. A Roth IRA flips this: you contribute after-tax dollars now, but qualified withdrawals — including all the growth — come out completely tax-free. For someone currently in the 22% bracket expecting to stay in the 22% bracket at retirement, the two are mathematically equivalent. But if your income will be higher in retirement (a common scenario for high earners or those with large traditional balances), Roth wins decisively.
The 2026 IRA contribution limit is $7,500 for all taxpayers, including a $1,000 catch-up for those 50 and older. Roth IRAs have income phase-out thresholds: for 2026, single filers begin to lose eligibility at $150,000 and are fully phased out at $165,000; married filing jointly phase-out runs $236,000–$246,000. High earners above those thresholds can still use the backdoor Roth IRA strategy — contributing to a non-deductible Traditional IRA and then converting — though this requires careful execution to avoid the pro-rata rule creating an unexpected tax bill.
Traditional IRA: deduct now, pay taxes at withdrawal. Roth IRA: pay taxes now, withdraw tax-free. If you expect to be in a lower bracket at retirement, Traditional often wins. Higher future bracket? Roth is likely better.
Both Traditional and Roth allow up to $7,500 per year in 2026 ($6,500 under 50, plus $1,000 catch-up). You can split contributions between both account types as long as the combined total stays under the annual limit.
Roth IRA contributions phase out for single filers earning $150,000–$165,000 in 2026, and for married couples earning $236,000–$246,000. Above those thresholds, the backdoor Roth conversion strategy is the typical workaround.
Traditional IRAs require RMDs starting at age 73 (per SECURE 2.0). Roth IRAs have no RMDs during the owner's lifetime — a major advantage for estate planning and for those who don't need the income immediately at retirement.
A traditional IRA gives a deduction now and taxes withdrawals later, which makes it the mirror image of a Roth. Deductibility is where the complexity lives: if neither you nor a spouse is covered by a workplace retirement plan, contributions are fully deductible at any income. If you are covered, the deduction phases out over an income range, and above it you may still contribute but not deduct — creating basis that must be tracked on Form 8606 for the rest of the account's life. Required minimum distributions begin at 73, forcing money out whether or not it is needed.
FV = PMT × [ ((1 + r)^n − 1) ÷ r ]After-tax value = FV × (1 − retirement tax rate)Tax saved now = contribution × current marginal rate2026 limit: $7,000 (+$1,000 at 50)where:
Assumptions: The IRA limit is shared across traditional and Roth accounts combined — $7,000 total, not $7,000 each. Early withdrawals before 59½ generally incur tax plus a 10% penalty.
Follow the full round trip for someone who retires into a slightly lower bracket.
Result$661,226 gross — $515,756 after 22% tax on withdrawal
The 2-point rate drop is what makes traditional win here on a like-for-like basis. Invest the $1,680 annual tax saving as well and the traditional route pulls further ahead — which is exactly the comparison most people skip, because the tax saving usually gets spent rather than invested.