Roth vs. Traditional IRA Calculator
Plan for the future so you can relax during retirement. See which IRA retirement account may grow your money the most over time.
Grow Your Nest Egg With Confidence
An IRA can be an effective retirement tool. There are two basic types of Individual Retirement Accounts (IRA): the Roth IRA and the Traditional IRA. Use this tool to determine which one may be right for you. Please note you shouldn’t use this calculator for Roth 401(k) comparisons.
See Our Competitive Rates
|
ACCOUNT TYPE |
MINIMUM BALANCE* |
DIVIDEND RATE |
APY** |
|---|---|---|---|
|
ACCOUNT TYPE IRA Savings Account |
MINIMUM BALANCE* $25 |
DIVIDEND RATE 0.25% |
APY** 0.25% |
Traditional vs. Roth IRA Calculator FAQs
It shows the benefit of deductible contributions in Traditional IRAs. It also compares it with the tax-free withdrawals of Roth IRAs. The calculator uses your age, income, and retirement goal for this comparison.
It shows higher contribution limits for individuals 50 or older and explains early or late withdrawal impacts. This helps in understanding tax breaks and penalty-free options for retirement savings.
It helps users understand the benefit of deducting contributions in Traditional IRAs compared to Roth IRAs’ non-deductible nature. Check with a financial advisor to see if this will provide tax advantages for your income taxes.
The tool models long-term growth, highlighting Traditional IRAs’ tax-deferred investments and Roth IRAs’ tax-free distributions.
Users can customize their retirement plan in the calculator to see how it impacts their IRA savings. It allows you to enter your current age and age of retirement.
It analyzes possible tax breaks from Traditional IRA deductions and Roth IRAs’ tax-free growth. This makes planning and saving for retirement easier.