Compare the after-tax value of Roth and Traditional IRA contributions, and check whether income limits even let you contribute directly.
A simplified comparison, not tax advice.
We grow the same annual contribution to age 65 at your expected return. A Roth is funded with money you already paid tax on, so the full balance is yours at withdrawal. A Traditional IRA is funded pre-tax, so we subtract tax at your assumed retirement rate to make the two comparable. The result depends less on guessing a single future bracket and more on whether your effective rate in retirement, after standard deductions and lower income, tends to sit above or below your working-years rate.
A Traditional IRA has no income ceiling for contributing, though the tax deduction can phase out if you or a spouse are covered by a workplace plan. A Roth IRA is different: contribution eligibility phases out entirely above an income threshold set annually by the IRS and based on modified adjusted gross income, which varies by filing status. If your income is anywhere near that range, check the current-year thresholds before assuming this calculator's Roth numbers apply to you directly, since a blocked direct contribution usually means routing through a backdoor Roth conversion instead.
| Limit | Amount | Tax year |
|---|---|---|
| IRA contribution limit | $7,500 | 2026 |
| Catch-up contribution, age 50+ | $8,600 total | 2026 |
Source: IRS Notice 2025-67, Nov. 13, 2025. Both the contribution limit and the Roth income phase-out ranges are adjusted most years; confirm the current figures at irs.gov/retirement-plans/roth-iras before contributing.
Deciding between this and a workplace account? The 401k calculator and 403b calculator use the same salary and return fields, so you can compare a match-eligible workplace plan against an IRA side by side.
No. Roth IRA contributions phase out above certain income levels and are blocked entirely past a higher threshold, both set annually by the IRS and based on modified adjusted gross income. A Traditional IRA has no income limit for contributing, though the tax deduction can phase out if you or a spouse have a workplace plan. Check the current thresholds before assuming you qualify.
It is a two-step move: contribute to a Traditional IRA (which has no income cap) and then convert that balance to a Roth. People whose income is too high for a direct Roth contribution use it to get money into Roth-style tax treatment anyway. It gets more complicated if you already hold other pre-tax IRA balances, so read up on the pro-rata rule or talk to a tax professional before trying it.
Each Roth conversion, and the account itself, has to clear a five-year holding period before earnings can come out tax-free and penalty-free, even if you are already past 59 and a half. Contributions themselves (not earnings) can usually be withdrawn any time without tax or penalty, since you already paid tax on that money.
It can be, mainly because the converted amount counts as taxable income in the year you convert. Converting a large balance in one year can push you into a higher bracket, trigger higher Medicare premiums down the line, or waste room you would have preferred to use for other income. Spreading conversions across several years is a common way to soften that.
No, it assumes you are eligible to contribute the amount you enter. The phase-out ranges change every year and depend on your filing status, so confirm your eligibility directly with the IRS figures linked below before you actually contribute.