When is Roth IRA better?

Roth wins when your current tax rate is lower than expected retirement tax rate, typically when young, in a lower bracket, or expecting higher income in retirement.

When is Traditional IRA better?

Traditional wins when your current tax rate is high and you expect lower income in retirement. The immediate deduction is more valuable than tax-free growth.

What about Required Minimum Distributions?

Roth IRAs have no RMDs during the owner lifetime. Traditional IRAs require withdrawals starting at age 73, which can push you into higher brackets.

Roth vs Traditional IRA Comparison

Compare after-tax retirement wealth from Roth vs Traditional IRA contributions based on current vs expected future tax rate, time horizon, and balance.

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