Retirement
Roth vs. Traditional
Pay tax now or pay tax later? Compare what each account leaves you to spend.
Your numbers
Traditional comes out ahead by
$17,710
Traditional balance
grows to $443K
- Traditional balance before tax
- $442,743
- Traditional, spendable after tax
- $363,049
- Roth, spendable (already taxed)
- $345,340
- Tax you skip today with Traditional
- $38,500
This assumes you contribute the same gross dollars to either account. Roth wins when your rate later is higher than your rate now, and Traditional wins when the opposite is true.
Roth vs. Traditional explained simply
You pay tax on retirement money once. Traditional means you skip tax now and pay later. Roth means you pay now and never again. This shows which one leaves you more to spend.
For example
Put $7,000 a year away for 25 years at 7%. If your tax rate stays about the same, both land in the same place. If taxes go up later, Roth wins.
Words on this page
Want a second set of eyes on these numbers?
These calculators are estimates for planning purposes and don't account for every detail of your situation. Bring your results to us and we'll pressure-test them against your actual tax picture.
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