Roth vs traditional
Same money out of your paycheck, two ways to save it. The traditional contribution is deducted now and taxed at withdrawal; the Roth is taxed now and withdrawn tax-free. Enter your rates and the calculator shows which leaves more after tax, and the retirement tax rate at which they tie.
You
After tax at withdrawal
$0Roth path (contribution taxed now)
$0traditional path (plus invested tax saving)
$0difference
0%break-even retirement rate
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How the comparison works
- Equal take-home: a $12,000 traditional contribution costs you $9,120 of take-home at 24%; the Roth path puts the same $9,120 into the Roth. In pure math that makes the two identical at equal tax rates, so the result is driven entirely by now-vs-later rates.
- Limit effect: if you can afford to max the account either way, the Roth shelters more after-tax money; the calculator shows that by letting the traditional path invest the tax saving in a taxable account with a small yearly tax drag.
- Match: grows pre-tax in both paths and is taxed at the retirement rate.
- Not modelled: state taxes (move states and the answer changes), RMDs on traditional balances from 73 or 75, Social Security taxation and IRMAA (pre-tax withdrawals raise both), the five-year Roth rule, and the chance that rates change by law.
2026 limits and brackets
| Item | 2026 |
|---|---|
| 401(k), 403(b), TSP employee deferral | $24,500 |
| 401(k) catch-up, age 50+ | $8,000 |
| 401(k) super catch-up, ages 60–63 | $11,250 |
| IRA contribution | $7,500 |
| IRA catch-up, age 50+ | $1,100 |
| HSA, self-only / family | $4,400 / $8,750 |
| Social Security wage base | $184,500 |
Brackets: 2026 and 2027 federal brackets. Roth IRA phase-out and backdoor rules are on the limits page.