← All tools
Tax simulator
Roth vs traditional simulator
For a contribution made this year, this shows whether pre-tax (traditional) or Roth leaves you with more after-tax money at withdrawal, growing the same contribution at the same assumed return over the same horizon so the only thing moving the answer is your tax rate now versus your rate in retirement. Change the retirement-rate assumption and watch the two ending balances cross, so you can see why the rate comparison, not a rule of thumb, drives the choice.
Background reading: Tax-advantaged accounts
Under these assumptions, Traditional leaves more after tax
$6,773
Traditional ends ahead by this much, because your rate now (32.0%) differs from your assumed rate in retirement (22.0%).
Hypothetical illustration. Both ending balances are illustrations under the rates, return, and horizon you set (32.0% now, 22.0% in retirement, 5.0% real return over 25 years), not a guarantee of any future result or of the rate you will actually face.
After-tax value at withdrawal (today's dollars)
Roth: tax paid now, withdrawal tax-free$46,054
Traditional: grows untaxed, withdrawal taxed$52,827
Your rate now vs. assumed rate in retirement32.0% vs. 22.0%
Where this goes next
This compares the two under assumptions; it does not tell you which to choose. That decision is a conversation with a CFP.
Assumptions and simplifications
- This is a hypothetical illustration under stated assumptions, not a guarantee of your actual result.
- The outcome is driven mainly by your marginal rate now versus in retirement; the return assumption and horizon scale both sides equally.
- It assumes the same gross contribution, a single constant return and rate, and ignores RMDs, state tax, and other retirement income.
- Holding some of each (tax-rate diversification) is a secondary reason this single-number comparison does not capture.