Project Traditional vs. Roth IRA growth over time with annual contributions and tax comparison.
Total Projected IRA Balance
$1,074,423.96
Gross pre-tax balance; taxed upon withdrawal in retirement
Estimated After-Tax Retirement Value
$913,260.37
Total Upfront Tax Savings
$58,800.00
Total Contributions
$245,000.00
Total Investment Growth
$819,423.96
Simulates annual compounding on initial IRA balance plus annual contributions. For Traditional IRAs, it models upfront tax deductions and retirement tax liability. For Roth IRAs, it models tax-free qualified withdrawals.
1. Select Traditional or Roth IRA account type. 2. Enter current age, retirement age, starting balance, and annual contribution. 3. For Traditional IRAs, input your current and expected retirement tax rates to compare after-tax retirement wealth.
Compares gross ending balance with estimated after-tax retirement value, accounting for tax deductions now vs. tax-free growth later.
FAQ
Traditional IRA contributions may be tax-deductible today, but withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are made with after-tax dollars, but qualified withdrawals in retirement are 100% tax-free.
Yes, eligible individuals can contribute to both an employer-sponsored 401(k) and an IRA up to each account's annual statutory limits.
Categories · Investments & Stocks