Cernarus

Roth vs Traditional IRA Comparison

This tool compares Roth and Traditional IRA outcomes using your assumptions: separate annual contributions to each account type, employer match (applied to Traditional), current balances, current and future tax rates, and expected investment returns. It projects future balances and computes after-tax retirement values to help you evaluate which account type may deliver higher after-tax wealth.

Results are scenario-driven: change assumptions to explore sensitivity. The calculator does not provide tax advice; always verify with a tax professional for your situation.

Updated Nov 17, 2025

Projects future balances for Roth and Traditional accounts given separate contribution amounts, employer match to Traditional, current balances, tax rates, and expected return. Shows after-tax retirement values to help decide which account type gives higher after-tax wealth.

Inputs

Results

Updates as you type

Projected Traditional balance

$628,748.03

After-tax Traditional withdrawals

$490,423.47

Projected Roth balance

$0.00

After-tax Roth withdrawals

$0.00

After-tax difference (Roth − Traditional)

-$490,423.47

OutputValueUnit
Projected Traditional balance$628,748.03USD
After-tax Traditional withdrawals$490,423.47USD
Projected Roth balance$0.00USD
After-tax Roth withdrawals$0.00USD
After-tax difference (Roth − Traditional)-$490,423.47USD
Primary result$628,748.03

Visualization

Methodology

We model future balances using standard future value formulas: existing balances compound at the expected annual return and each year’s contribution compounds using the future value of an ordinary annuity. Employer match is treated as an additional pre-tax contribution into the Traditional account.

For Roth contributions we model them as made with post-tax dollars (employee pays income tax today), and Roth qualified distributions are assumed tax-free in retirement. For Traditional we assume contributions are pre-tax and withdrawals in retirement are taxed at the expected retirement marginal rate.

Conversion (backdoor) assessment estimates the immediate tax due at the current marginal rate on the converted pre-tax principal, then projects the converted principal's future value tax-free. The comparison includes a scenario that projects the after-tax value if funds remain in Traditional and are taxed upon withdrawal.

Key takeaways

Use separate contribution fields for Roth and Traditional to model mixed strategies. Employer match is applied to Traditional contributions by default.

Run multiple scenarios for marginal tax rates today and in retirement to understand sensitivity. The calculator provides a deterministic, assumptions-based comparison — not personalized tax or investment advice.

Further resources

Expert Q&A

Does the tool account for employer match rules or non-elective employer contributions?

Employer match is modeled as an additional annual pre-tax contribution to the Traditional account proportional to the specified match percentage and your Traditional employee contribution. Specific employer plan rules and vesting are not modeled; adjust inputs if your employer match is different.

How should I choose tax rates to enter?

Use your best estimate for your current marginal rate and the rate you expect in retirement. The calculator compares after-tax results under those assumptions. Because future tax policy is uncertain, run multiple scenarios (higher and lower retirement tax rates).

Are required minimum distributions (RMDs) or early withdrawal penalties included?

This tool does not model RMD timing, penalties, or state taxes. It focuses on aggregate after-tax value at the chosen retirement age. For RMDs, age-based rules, or early withdrawal penalties, consult tax guidance and run adjusted scenarios.

How accurate are the projections?

Projections use deterministic mathematical formulas and depend entirely on your inputs. They do not model market volatility, sequence-of-returns risk, or tax-law changes. See the accuracy and standards caveats below.

Sources & citations