Should I choose Roth or traditional contributions for 2026 or 2027 planning?
Use this Roth vs traditional calculator to compare current and retirement marginal tax rates. Enter current taxable income, expected retirement taxable income, and contribution amount to estimate which contribution type may have the higher after-tax value.
Roth vs traditional calculator
Quick answer
Roth contributions usually look better when your current tax rate is lower than your expected retirement tax rate. Traditional contributions usually look better when your current rate is higher and the deduction is more valuable now.
Also answers
- Roth or traditional 401k calculator
- Roth IRA vs traditional IRA calculator
- retirement tax calculator
- traditional vs Roth contribution calculator
Good fit when
- Comparing contribution tax treatment
- Testing current versus retirement tax rates
- Planning 401(k), IRA, and year-end contribution strategy
Have ready
- Tax year and filing status
- Current taxable income
- Expected retirement taxable income and contribution amount
Result you get
Estimated Roth value, traditional value, current marginal rate, and retirement marginal rate.
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.
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