Deductible IRA vs. Roth IRA Analysis and Online Calculator

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Deductible IRA vs. Roth IRA Analysis

Use the calculator below to determine whether you should contribute to a deductible IRA or Roth IRA.

Number of dollars to contribute to IRA

Number of years of sheltered growth in IRA

Pretax return on investment (constant pct)

"Early" tax rate at time of contribution (pct)

"Late" tax rate at time of withdrawal (pct)

Notes :

Check out our page on Roth IRAs.

Roth IRAs can only be established after Dec. 31, 1997.

Contributions grow at a constant pretax rate that you indicate.

Deductible IRA contributions give you an immediate tax benefit. This benefit is assumed to be invested at the same rate of return, however these earnings are taxed at the "early" tax rate.

All funds are assumed to be withdrawn after the end of the indicated year. The 10 percent penalty tax for early withdrawals is assumed to be avoided. The deductible IRA and the final year of the tax benefit's earnings are taxed at the indicated "late" tax rate. Distributed Roth IRA funds face no "late" tax.

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