Roth vs Traditional IRA

Simplified comparison of after-tax retirement value. Assumes equal pre-tax budget; consult a tax professional for your situation.

Annual contribution ($)Years until withdrawalExpected annual return (%)Marginal tax rate today (%)Expected tax rate in retirement (%)

Roth IRA — after-tax value at withdrawal

$707,511

Traditional IRA — after-tax value at withdrawal

$551,859

Higher projected outcome (this scenario)

Roth

For illustration only — not investment, tax, or legal advice. QuantRidge is software, not a Registered Investment Adviser. Already have an account? Log in.