Roth vs Traditional IRA Comparison
Make the right choice for your retirement savings. Compare tax benefits, withdrawal rules, and long-term projections to determine which IRA type fits your financial situation.
IRA Comparison Calculator
Your Information
Tax Assumptions
Traditional IRA
Roth IRA
Recommendation
Roth IRA provides $135,079.095 more after-tax value
Which IRA is Right for Your Situation?
Young Professional
Lower current tax rate, expect higher income (and taxes) in retirement
Peak Earner
High current tax rate, expect lower taxes in retirement
Mid-Career
Similar tax rates suggest diversifying with both account types
Near Retirement
Limited time for Roth growth, immediate tax savings beneficial
Feature-by-Feature Comparison
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
Tax Deduction Traditional IRAs offer immediate tax savings, while Roth IRAs use after-tax dollars | No immediate deduction | Tax-deductible contributions |
Withdrawal Taxes Roth IRAs provide tax-free income in retirement, while Traditional IRA withdrawals are fully taxable | Tax-free withdrawals in retirement | Taxed as ordinary income |
Required Distributions Traditional IRAs require minimum distributions starting at 73, while Roth IRAs have no lifetime RMDs | No RMDs during lifetime | RMDs start at age 73 |
Early Withdrawal Penalties Roth IRAs offer more flexibility for early access to contributions | Contributions anytime, earnings after 5 years + age 59½ | 10% penalty before age 59½ (with exceptions) |
Income Limits Both have income restrictions, but they apply differently | Phase-out starts at $138K (single), $218K (married) | Phase-out varies by income and 401(k) participation |
Estate Planning Roth IRAs provide better tax benefits for heirs | Tax-free inheritance for beneficiaries | Beneficiaries pay taxes on withdrawals |
IRA Frequently Asked Questions
IRA Basics
Tax Strategy & Planning
Income Limits & Eligibility
Withdrawals & Distributions
Important Disclaimer
Educational Content Only: The information provided on this page is for educational and informational purposes only. It is not intended as tax advice, financial advice, or recommendations for specific retirement products or services.
Tax Projections and Calculations: Our IRA calculator provides estimates based on assumptions about tax rates, investment returns, and other factors. Actual results may vary significantly based on changes in tax laws, market performance, and individual circumstances.
No Guarantee of Results: Retirement projections, tax savings estimates, and investment returns shown are hypothetical and based on assumptions. Past performance does not guarantee future results. Tax laws and retirement account rules may change over time.
Professional Advice Recommended: IRA selection involves complex tax considerations that depend on your specific situation. Before making retirement account decisions, consider consulting with a qualified tax professional, financial advisor, or retirement planning specialist.
Tax Law Complexity: Retirement account rules, contribution limits, income thresholds, and withdrawal requirements are subject to change and can be complex. Always verify current rules with official IRS publications or qualified professionals.
Individual Circumstances: The best IRA choice depends on your unique tax situation, income level, retirement timeline, and financial goals. What works for others may not be optimal for your specific circumstances.
No Liability: Warren AI and its affiliates are not liable for any financial losses, tax consequences, or other damages resulting from the use of information provided on this page or retirement planning decisions made based on this content.
Last updated: July 11, 2025
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