Compound Lane · Roth vs Traditional
Roth or traditional?
Roth is taxed now and grows tax-free; traditional is deducted now and taxed at withdrawal. The deciding math: is your tax rate now higher or lower than at retirement?
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After-tax future value
Roth (tax now, grow free)$—
Traditional (deduct now, tax later)$—
Gap$—
Here's why
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$7,500 2026 IRA limit (IRS; $8,600 age 50+ catch-up). Compared at the same after-tax cost. Source & verification date →
Your next step
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Where this fits
Assumptions & methodology
Roth: pay tax now, grow tax-free (FV of after-tax contributions). Traditional: deduct now, grow pre-tax, pay tax at withdrawal — compared at the same after-tax cost. Monthly compounding; taxes applied once (now vs later).
Then decide account priority: 401(k) or Roth IRA? or quantify the goal: Retirement Goal.
Education, not advice: This tool is for education only and is not personalized financial advice. Tax rules are complex and individual — verify at irs.gov.