Roth vs Traditional IRA Break-Even Tax Rate
Find the break-even tax rate where Roth and Traditional IRA leave the same after-tax money.
Roth vs Traditional comparisons are done in your browser; no account or contribution details are transmitted.Try: Current age=30, Retirement age=65, Annual contribution=7000, Current tax bracket=24, Expected retirement bracket=24, Expected annual return=7 → $735,420, $735,420, $0
How to use
The break-even point is simple: if your retirement tax bracket equals your current bracket, Roth and Traditional land in the same place after tax. If your current bracket is higher, Traditional wins; if retirement is higher, Roth wins. Enter your own brackets to see the gap.
FAQ
What tax rate makes Roth and Traditional equal?
They are equal when your marginal rate at contribution equals your marginal rate at withdrawal. The calculator shows the dollar gap for whatever rates you enter.
Why guess my future tax bracket?
You can’t know it exactly, but most people estimate from expected retirement income and today’s brackets. The tool shows how sensitive the result is to that assumption.