Tool · Invest

Roth vs. Traditional IRA

Whichever bracket you expect to be in then versus now drives the answer. Run your scenario.

Inputs

Annual contribution

2026 IRA limit is $7,000 ($8,000 if 50+).

Years until withdrawal

Expected annual return

Your current marginal tax bracket

Expected bracket in retirement

After-tax outcome

Roth IRA

$661,226

Tax-free withdrawals after age 59½

Traditional IRA

$515,756

After paying 22% on withdrawals

Roth wins by $145,470. When your retirement bracket is higher than today's, you want to pay the tax now while the rate is lower.

Simplified model. Does not include the opportunity cost of upfront Roth tax payments invested in a taxable account, RMDs, state tax, or future law changes.

Open an IRA

All three offer free Roth and Traditional IRAs.

Fidelity →Schwab →Vanguard →