Jackson County Bank - Roth vs. Traditional IRA

Home Financial Calculators Roth vs. Traditional IRA

This Financial Calculator requires a Browser with Java Support

Information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Current age:

Your current age

Annual contribution:

The amount you will contribute to your a IRA each year. The maximum contribution is $2000 per year. Traditional IRA contributions can be tax deductible, but require you to pay taxes on all interest earned when you make withdrawals. A Roth IRA contribution is not tax deductible, but all contributions and earnings are tax free when you make withdrawals.

Expected rate of return:

The annual percent you expect to earn on your investment.

Age of retirement:

Age you desire to retire.

Current tax rate:

The current marginal income tax rate you expect to pay on your taxable investments.

Retirement tax rate:

The marginal tax rate you expect to pay on your investments at retirement.

Adjusted gross income:

Your adjusted gross income from your taxes. This is used to calculate whether you are able to deduct your annual contributions from your income tax statement.

Married:

Check the box if you are married. This is used to determine whether you can deduct your annual contributions from your taxes.

Employer plan:

Check the box if you have an employer sponsored retirement plan, such as a 401k or pension. This is used to determine if you can deduct your annual contributions from your taxes.

Total non-deductible contributions:

For a Traditional IRA, this is the total amount of your contributions that were deposited without a current year tax deduction. (Roth IRA contributions are always non-deductible)

Total contributions:

The total amount contributed to your IRA.

IRA total after taxes:

For the Roth IRA this is the total value of the account. For the Traditional IRA this the sum of two parts: 1) The value of the account after you pay income taxes on all earnings and tax deductible contributions and 2) what you would have earned if you had invested (in a ordinary taxable account) any income tax savings.