What is the 2026 IRA contribution limit?

$7,000 per year. If you are age 50 or older, the limit increases to $8,000 (a $1,000 catch-up contribution). These limits apply per person, per year, and are shared across all IRA accounts you hold. Source: IRS Rev. Proc. 2025-43.

Are there income limits for Roth IRA contributions?

Yes. For single filers in 2026, Roth contributions phase out between $150,000 and $165,000 of modified adjusted gross income. Above $165,000, direct Roth contributions are not allowed. For married filing jointly, the phase-out runs from $236,000 to $246,000. If you exceed these limits, look into the backdoor Roth IRA strategy (Traditional IRA contribution plus immediate conversion).

Can I contribute to both a Roth and a Traditional IRA in the same year?

Yes. But your combined contributions across all IRA accounts cannot exceed the annual limit ($7,000, or $8,000 if age 50 or older). Splitting contributions between account types does not increase your total allowable contribution.

What retirement tax bracket should I enter?

Your best estimate of your marginal federal rate during the years you will draw on the account. Key factors: expected Social Security income, Traditional IRA or 401(k) balance size (which generates RMDs), other income sources, and expected annual spending. If you are unsure, run the tool at 12%, 22%, and 32% to see how sensitive the result is to your assumption.

What return rate should I use?

7% is the approximate long-run nominal annual return of a broad US stock index fund. Use 5% for a conservative estimate or if you hold a bond-heavy allocation. Use 9% to model a more aggressive equity-only scenario. The same rate applies to both accounts in this model, so it affects the size of the difference, not which account wins.

Does this account for required minimum distributions?

No. Traditional IRAs require RMDs beginning at age 73. RMDs are taxable withdrawals that can push your bracket higher, affect Medicare premium costs, and reduce the value of tax deferral. Roth IRAs have no RMDs during the owner's lifetime, which is a meaningful long-term advantage if you do not need the income.

What if my state taxes IRA withdrawals differently than regular income?

The tool adds state tax to the Traditional IRA withdrawal and to the current-year Roth contribution at the same rate. Some states exempt retirement income or IRA withdrawals entirely. If your state has different rules, adjust the state tax field to reflect the effective state rate you expect to actually pay on retirement withdrawals.

Is my data saved or sent anywhere?

No. The calculator runs entirely in your browser. No inputs are stored on OnSumo servers. Close the tab and the data is gone.

Roth vs Traditional IRA: which is better for young investors?

Neither is universally better. Early-career income is often lower, which means a lower tax rate now and a potentially higher one in retirement — a setup that favors Roth. But if you expect modest retirement income or already hold significant pre-tax savings, Traditional may produce a better outcome. The only way to know is to enter your actual brackets.

Can I still contribute to an IRA if I have a 401(k) at work?

Yes. Having a workplace retirement plan does not prevent IRA contributions. However, it may limit your ability to deduct Traditional IRA contributions depending on your income. See IRS Publication 590-A for the deductibility phase-out thresholds.

Roth vs Traditional IRA: Which Is Better in 2026?

This calculator compares the after-tax retirement value of a Roth IRA versus a Traditional IRA using your actual current and expected retirement tax brackets. Enter your annual contribution, return rate, years to retirement, and tax rates to see which account leaves you with more money.

The core question is simple: will your tax rate be lower now, or lower in retirement? This tool answers it with your specific numbers, not averages.

In 2026, that question carries extra weight. The Tax Cuts and Jobs Act individual rate cuts are scheduled to expire after 2025 unless Congress acts, which means current brackets could rise for many filers. Anyone sitting in the 22% or 24% bracket today may face a 25% or 28% bracket in retirement even with the same income. That changes the math on tax deferral significantly.

This tool runs both projections simultaneously. You see the dollar difference at any time horizon, not a rule of thumb. The calculation runs entirely in your browser -- nothing you enter is stored or sent anywhere. It takes about two minutes to model your scenario and see which account type wins for your actual numbers.

100% client-side. Your inputs stay in this browser.

Compare after-tax outcomes: Roth IRA vs Traditional IRA. Chart updates instantly.

Country / region

Changing region updates defaults and currency for your location.

Roth: post-tax contributions, tax-free growth and withdrawals. Traditional: pre-tax contributions, taxed at withdrawal.

Annual contribution ($7,000)Annual limit: $7,000.Years to retirement30 yearsCurrent federal marginal bracketExpected retirement federal marginal bracketNominal annual return (7%)State marginal income tax (0%)Leave blank or 0 for no state income tax.

Tie

Both accounts produce the same result when your current and retirement brackets match.

Roth IRA after-tax

$515,756

Traditional IRA after-tax

$515,756

After-tax balance by year

Milestone balances

Year	Roth IRA after-tax	Traditional IRA after-tax
5	$31,399	$31,399
10	$75,438	$75,438
15	$137,204	$137,204
20	$223,835	$223,835
25	$345,340	$345,340
30	$515,756	$515,756

How to use this calculator

Enter your inputs in order and the result updates in real time.

Enter your annual contribution.
Set the contribution amount to what you plan to invest each year. The 2026 IRS maximum is $7,000 per person, or $8,000 if you are age 50 or older. If you contribute less than the maximum, enter your actual planned amount for an accurate projection.
Set your current marginal tax bracket.
Select your federal marginal rate for this tax year -- the rate on your last dollar of income, not your effective rate. If you are unsure of your bracket, check your most recent federal tax return or use the IRS withholding estimator.
Set your expected retirement tax bracket.
Enter your best estimate of the marginal rate you will face when drawing on this account. Consider Social Security income, required minimum distributions from other pre-tax accounts, and any pension or rental income. If you are uncertain, run the tool at three values -- 12%, 22%, and 32% -- to see the full range of outcomes before deciding.
Enter your expected annual return.
The default is 7%, which approximates the long-run nominal return of a broad US stock index. Use 5% for a conservative estimate or 9% for an equity-heavy allocation. The same rate applies to both accounts, so it affects the size of the result but not which account wins.
Set years to retirement and state tax rate.
Years to retirement determines how long compounding runs. State tax rate adds your state's marginal rate to the calculation. Enter 0% if your state has no income tax on ordinary income.
Read the result.
The calculator displays the after-tax terminal value for each account, the dollar difference, and a year-by-year growth chart. The larger number is the account type that wins for your inputs.

How this tool works

Roth IRA contributions are taxed before entering the account and grow tax-free; Traditional IRA contributions enter pre-tax, grow tax-deferred, and are taxed at withdrawal.

Traditional IRA: pay tax at withdrawal

You contribute pre-tax dollars. The full contribution enters the account and compounds without annual tax drag. At retirement, every dollar you withdraw is taxed as ordinary income at your retirement marginal rate (federal plus state). After-tax value = FV_traditional x (1 - retirement_rate - state_rate), where FV_traditional = C x (((1 + r)^n - 1) / r).

Roth IRA: pay tax now, withdraw tax-free

You contribute after-tax dollars. You pay income tax on the contribution today, so only C x (1 - current_rate - state_rate) actually enters the account. That reduced amount compounds, and qualified withdrawals at retirement are entirely tax-free. After-tax value = C x (1 - current_rate - state_rate) x (((1 + r)^n - 1) / r).

The comparison

Both formulas share the same growth multiplier. The winner depends entirely on the tax-rate comparison: Roth wins when your current rate is lower than your retirement rate; Traditional wins when your retirement rate will be lower. Equal rates produce equal results. The tool runs both calculations in real time as you adjust the sliders. The year-by-year chart shows how the two accounts diverge over time.

When to use this tool

Use this calculator when you are deciding where to contribute this year, in a temporarily lower-income year, or before meeting with a financial advisor to model your bracket scenario with real numbers.

You are choosing between account types for the current year.
You have room to contribute and need to decide where the money goes. Enter your current bracket and your best estimate of your retirement bracket. The calculator gives you a dollar figure, not a rule of thumb.
You are in a temporarily lower-income year.
Income drops due to a job change, career transition, parental leave, or a business startup loss. Your current tax rate may be lower than your long-term average. Enter your actual current bracket to see if this year strongly favors a Roth contribution.
You are in a high-income bracket now but expect lower income in retirement.
Filers in the 32%, 35%, or 37% bracket with a pension, Social Security, and modest withdrawal needs may find Traditional IRA produces more after-tax wealth. Run the scenario before assuming Roth is always better.
You have a large pre-tax balance and are thinking about required minimum distributions.
If you already hold substantial Traditional IRA or 401(k) funds, RMDs starting at age 73 will force taxable income. Try entering a higher retirement bracket to model what RMD-driven income does to the comparison.
You are comparing strategies as a dual-income household.
Each spouse can contribute separately. Run the tool with each spouse's individual bracket to see whether one account type is better for one partner, or whether splitting contributions makes sense.
You want a baseline before talking to a financial advisor.
Advisors charge by the hour. Arriving with a clear picture of your bracket scenario, your numbers, and the dollar difference between accounts makes the conversation faster and more productive.

Key variables explained

The most consequential input is the expected retirement tax bracket: small differences in that estimate can flip the winning account type.

Annual contribution ($1 to $7,000): The amount you contribute each year. The 2026 IRS limit is $7,000 per person, or $8,000 if you are age 50 or older (per IRS Rev. Proc. 2025-43). The tool defaults to $7,000. If you contribute less, enter your actual expected annual amount for an accurate projection.
Current marginal tax bracket (10% to 37%): Your current federal marginal rate: the rate on your last dollar of income, not your effective rate. The tool offers the standard US federal brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%. This is the rate at which you currently pay tax on an additional contribution. Entering your effective rate (which is lower) would understate the Traditional IRA benefit.
Expected retirement tax bracket (10% to 37%): Your best estimate of the federal marginal rate you will face when you withdraw money in retirement. This is the most consequential variable in the model. If you are uncertain, run the tool at multiple values (12%, 22%, 32%) to see the range of outcomes before committing.
Annual return rate (0.1% to 15%): The expected annual growth rate for the investments inside the IRA. The default is 7%, which approximates the long-run nominal return of a broad US stock index. For a conservative estimate, use 5%. For a more aggressive equity-only scenario, use 9%. This rate applies equally to both accounts in the model.
Years to retirement (1 to 50): The number of years until you plan to begin drawing on the account. The calculator models a single lump-sum valuation at retirement, not a multi-year drawdown sequence.
State income tax rate (0% to 13.3%): Your state marginal income tax rate on ordinary income. Nine US states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Leave this at 0% if your state does not tax income. This rate is added to the federal rate for the Traditional IRA withdrawal tax and for the Roth IRA contribution tax.

Worked example

When your current and retirement brackets are equal, Roth and Traditional IRA produce identical after-tax values; the winning account only changes when the brackets diverge.

Same bracket now and in retirement

Annual contribution: $7,000. Current bracket: 22%. Retirement bracket: 22%. Annual return: 7%. Years: 30. State tax: 0%. Traditional IRA future value: $7,000 × (((1.07)^30 − 1) / 0.07) = $7,000 × 94.46 = $661,226. After-tax: $661,226 × (1 − 0.22) = $515,756. Roth IRA: $7,000 × (1 − 0.22) × 94.46 = $5,460 × 94.46 = $515,752. Result: $515,756 versus $515,752. Effectively identical (within rounding). Equal brackets always produce equal results — it is built into the math.

Lower bracket in retirement (Traditional wins)

Same inputs, but change retirement bracket to 12%. Traditional after-tax: $661,226 × (1 − 0.12) = $581,879. Roth after-tax: $515,752 (unchanged). Traditional wins by $66,127. Deferring the tax until a lower-bracket retirement increased after-tax wealth by about 13%.

Higher bracket in retirement (Roth wins)

Same inputs, but change retirement bracket to 32%. Traditional after-tax: $661,226 × (1 − 0.32) = $449,634. Roth after-tax: $515,752. Roth wins by $66,118. Paying tax now at 22% beats paying later at 32% — by the same dollar margin in the opposite direction.

5-year milestones (current = 22%, retirement = 32%, return = 7%)

Year	Roth after-tax	Traditional after-tax	Roth advantage
5	$31,399	$27,374	+$4,025
10	$75,438	$65,766	+$9,672
15	$137,204	$119,614	+$17,590
20	$223,835	$195,139	+$28,696
25	$345,340	$301,065	+$44,275
30	$515,756	$449,633	+$66,123

The Roth advantage compounds alongside the account itself. Small bracket differences early on become large dollar differences by year 30. The live tool recalculates these values for your exact inputs.

Frequently asked questions

The most common questions about the Roth vs Traditional IRA calculator in 2026 cover contribution limits, income eligibility, tax-bracket timing, and required minimum distributions.

Roth vs Traditional IRA: which is better in 2026?
It depends entirely on whether your tax rate is higher now or in retirement. With the TCJA rate cuts scheduled to expire after 2025, filers in the 22% and 24% brackets face possible rate increases in future years -- which would favor paying tax now via Roth. Run this calculator with your actual current and projected retirement brackets to get a dollar answer for your specific situation.
What is the 2026 IRA contribution limit?
$7,000 per year. If you are age 50 or older, the limit increases to $8,000 (a $1,000 catch-up contribution). These limits apply per person, per year, and are shared across all IRA accounts you hold. Source: IRS Rev. Proc. 2025-43.
Are there income limits for Roth IRA contributions?
Yes. For single filers in 2026, Roth contributions phase out between $150,000 and $165,000 of modified adjusted gross income. Above $165,000, direct Roth contributions are not allowed. For married filing jointly, the phase-out runs from $236,000 to $246,000. If you exceed these limits, look into the backdoor Roth IRA strategy (Traditional IRA contribution plus immediate conversion).
Can I contribute to both a Roth and a Traditional IRA in the same year?
Yes. But your combined contributions across all IRA accounts cannot exceed the annual limit ($7,000, or $8,000 if age 50 or older). Splitting contributions between account types does not increase your total allowable contribution.
What retirement tax bracket should I enter?
Your best estimate of your marginal federal rate during the years you will draw on the account. Key factors: expected Social Security income, Traditional IRA or 401(k) balance size (which generates RMDs), other income sources, and expected annual spending. If you are unsure, run the tool at 12%, 22%, and 32% to see how sensitive the result is to your assumption.
What return rate should I use?
7% is the approximate long-run nominal annual return of a broad US stock index fund. Use 5% for a conservative estimate or if you hold a bond-heavy allocation. Use 9% to model a more aggressive equity-only scenario. The same rate applies to both accounts in this model, so it affects the size of the difference, not which account wins.
Does this account for required minimum distributions?
No. Traditional IRAs require RMDs beginning at age 73. RMDs are taxable withdrawals that can push your bracket higher, affect Medicare premium costs, and reduce the value of tax deferral. Roth IRAs have no RMDs during the owner's lifetime, which is a meaningful long-term advantage if you do not need the income.
What if my state taxes IRA withdrawals differently than regular income?
The tool adds state tax to the Traditional IRA withdrawal and to the current-year Roth contribution at the same rate. Some states exempt retirement income or IRA withdrawals entirely. If your state has different rules, adjust the state tax field to reflect the effective state rate you expect to actually pay on retirement withdrawals.
Is my data saved or sent anywhere?
No. The calculator runs entirely in your browser. No inputs are stored on OnSumo servers. Close the tab and the data is gone.
Roth vs Traditional IRA: which is better for young investors?
Neither is universally better. Early-career income is often lower, which means a lower tax rate now and a potentially higher one in retirement — a setup that favors Roth. But if you expect modest retirement income or already hold significant pre-tax savings, Traditional may produce a better outcome. The only way to know is to enter your actual brackets.
Can I still contribute to an IRA if I have a 401(k) at work?
Yes. Having a workplace retirement plan does not prevent IRA contributions. However, it may limit your ability to deduct Traditional IRA contributions depending on your income. See IRS Publication 590-A for the deductibility phase-out thresholds.

Limitations and caveats

This tool models a single lump-sum withdrawal at retirement and does not account for required minimum distributions, Roth conversions, or income-limit eligibility.

Single lump-sum withdrawal model. This tool calculates one terminal value and applies the tax rate in a single step. Real retirement drawdowns occur over years or decades, often across varying tax brackets. The model does not simulate a withdrawal sequence or year-by-year tax impact.
No RMD modeling. Traditional IRAs require minimum distributions starting at age 73 under SECURE 2.0. RMDs can push taxable income into higher brackets and trigger Medicare IRMAA surcharges. Roth IRAs have no RMDs during the owner's lifetime. This tool does not model RMD-driven tax bracket changes.
No Roth conversion modeling. If you are considering converting pre-tax funds to a Roth IRA, the conversion creates taxable income in the conversion year. This tool does not model partial or full Roth conversions.
No income limit check. Roth IRA contributions phase out for single filers with modified adjusted gross income between $150,000 and $165,000 in 2026, and between $236,000 and $246,000 for married filing jointly. The tool does not check eligibility. If you are above the phase-out, consult IRS Publication 590-A or a tax professional.
No employer plan comparison. A 401(k) or 403(b) with an employer match changes the analysis significantly. This tool models IRA accounts only.
Tax law can change. The current federal brackets are scheduled to change after 2025 unless Congress acts on TCJA expiration. The tool uses 2026 contribution limits from IRS Rev. Proc. 2025-43 but cannot predict future rate changes.
No inflation adjustment. All values are nominal. $661,000 in 30 years has less purchasing power than $661,000 today. For real-dollar projections, you can apply a 3% average inflation assumption to deflate the terminal values.

Sources

IRS Rev. Proc. 2025-43 — 2026 retirement plan contribution limits.
IRS Publication 590-A — Contributions to Individual Retirement Arrangements.
SECURE 2.0 Act of 2022 — Required minimum distribution age change to 73.
Tax Cuts and Jobs Act of 2017 — Individual income tax rate provisions scheduled to expire after 2025.