Should I choose Roth or traditional contributions in 2025?
Compare Roth versus traditional contributions for 2025 or 2026 by entering current and retirement taxable income and a planned contribution amount. The calculator estimates your current and future marginal rates and shows which option delivers the higher after-tax value under the same assumptions.
How this calculation works
- Calculates marginal rates for current and retirement income.
- Applies each marginal rate to the contribution amount.
- Compares after-tax value between Roth and traditional options.
Common mistakes and caveats
- Assumes identical investment growth and withdrawal timing.
- Contribution limits and income phaseouts are not evaluated.
- State taxes are not included in the comparison.
FAQ
Does a Roth contribution lower my taxable income now?
No. Roth contributions are after-tax and generally do not reduce current taxable income.
TaxGuide Pro provides free state and federal tax calculators for individuals, freelancers, and small businesses.