Understanding the ira calculator
A traditional IRA reverses the Roth's tax timing: contributions are often deductible now, the account grows tax-deferred, and you pay ordinary income tax on every withdrawal in retirement. That upfront deduction is valuable while you're working, but it means the headline balance overstates what you'll actually keep the government owns a slice of it.
Whether traditional or Roth is better hinges on your tax rate now versus later. If you expect a lower bracket in retirement, deducting at today's higher rate wins; if you expect a higher bracket, the Roth's tax-free withdrawals win. Traditional IRAs also require minimum distributions starting at age 73, which force taxable withdrawals whether you need the money or not.
Results are estimates for education only and are not financial advice.