Compare pre-tax IRA, Roth IRA and taxable savings using an equal pre-tax budget and your tax assumptions.
Calculator
Equal pre-tax budget comparison, not a conversion or eligibility calculation. Assumes deductible pre-tax contributions and qualified Roth withdrawals. Contributions occur at year end; limits and early-withdrawal taxes are not modeled.
IRA Comparison Results
Equal pre-tax budget; modeled after-tax values, not a withdrawal or conversion quote.
Modeled After-Tax Balances at Retirement ($)
Comparison and Assumptions
| Measure | Value | Basis |
|---|
Annual IRA and taxable savings schedule
| Age at start | Pre-tax IRA, before tax | Pre-tax IRA, modeled after tax | Roth, assuming qualified | Taxable savings | ||||
|---|---|---|---|---|---|---|---|---|
| Start | End | Start | End | Start | End | Start | End | |
Compare Traditional IRA, Roth IRA and taxable savings
This IRA calculator compares three ways to allocate the same pre-tax savings budget. It models fully deductible pre-tax IRA contributions, qualified Roth withdrawals and a simplified taxable account. The tax rates and investment return are your assumptions, not a forecast or a recommendation to choose one account.
Understand the starting balance
Enter a pre-tax equivalent balance, not an already after-tax Roth balance. With a $30,000 starting budget and 25% current tax assumption, the comparison starts the pre-tax IRA at $30,000 and each after-tax alternative at $22,500. This normalizes the scenarios to an equal gross budget; it is not a Roth conversion transaction, an estimate of conversion tax due or a statement about the balances in your actual accounts.
How annual contributions and taxes work
Contributions are added at year end. The full annual budget enters the pre-tax scenario; Roth and taxable contributions are reduced by the current tax assumption. The pre-tax IRA grows without annual tax in this model, then its entire balance receives the retirement-tax reduction for comparison. This assumes no nondeductible basis and does not simulate a multiyear withdrawal tax return.
The taxable scenario taxes each year's positive investment return at the current rate, with no tax credit assumed for losses. It is an annual tax-drag illustration, not a capital-gains, dividend or tax-loss-harvesting model. It does not defer gains until sale. Actual investments and account tax treatment can differ substantially.
Worked equal-budget example
Start at age 30 with a $30,000 pre-tax equivalent balance, add a $7,500 annual pre-tax budget and compare values at 65. With 6% annual return, 25% current tax and 15% retirement tax assumptions, the pre-tax IRA reaches about $1,066,343, or $906,392 after modeled tax. The Roth scenario reaches about $799,758, assuming qualified withdrawals, and simplified taxable savings about $563,434. The annual table preserves full precision internally; displayed amounts are rounded.
Check the rules separately
Deductibility and contribution eligibility are not universal. Review the IRS Traditional and Roth IRA overview and Publication 590-A for contribution and deduction rules. This tool does not enforce annual limits, compensation limits, income phaseouts or plan coverage. The pre-tax growth model can illustrate a deductible Traditional, SEP or SIMPLE IRA budget, but does not make their different contribution rules interchangeable.
Roth results assume qualified distributions. IRS Publication 590-B describes the five-year requirement and age 59½ or other qualifying conditions. Entering a retirement age alone does not establish qualification. Early distributions, conversions, nondeductible basis, RMDs, fees and changing tax rates are excluded. Sources explain the rules; they do not endorse this tool.
Continue your retirement estimate
Model workplace contributions separately with the 401(k) calculator and employer-match mode. For a required-withdrawal estimate rather than an account-growth comparison, use the RMD calculator. Each tool has its own timing and tax assumptions; its outputs are not interchangeable.
Frequently asked questions
Does the result tell me which IRA is best?
No. It compares modeled balances under the rates you entered. Eligibility, employer benefits, actual investments, withdrawal timing and future taxes can change the decision. Tax assumptions are applied as constant percentages, not progressive brackets.
Can I enter my existing after-tax savings balance?
The comparison input is pre-tax equivalent. For standalone growth of an already after-tax balance, use the compound interest calculator with appropriate tax assumptions; it does not establish Roth eligibility.
Can I estimate monthly IRA payouts?
This page compares accumulation, not withdrawals. Use the withdrawal or longevity mode in the retirement calculator for a separate drawdown scenario. An investment-account withdrawal projection is not an insurer's lifetime annuity quote. Use the RMD calculator for a separate minimum lifetime-distribution estimate where applicable.