Roth · rank #1
About $708,455.90 after-tax nest egg · year-1 boost $0.00.
On $7,500/yr from age 35→65 at 7% (TX · 2026), Roth models about $708,455.90 after-tax nest egg (full balance; year-1 tax savings $0).
Contributions are after-tax — no year-1 AGI reduction — and qualified withdrawals are generally tax-free.
Tax now: the contribution does not reduce taxable income this year, so year-1 tax savings vs a no-contribution baseline are $0 (AGI unchanged).
On $7,500/yr from age 35→65 at 7% (TX · 2026), Roth models about $708,455.90 after-tax nest egg (full balance; year-1 tax savings $0).
Shared balance ≈ $708,455.90; after-tax nest egg ≈ $708,455.90.
Year-1 tax savings ≈ $0.00 on $100,000 single TX.
Tax-free later: the modeled nest egg at retirement is the full account balance (qualified withdrawal assumption).
The ladder recomputes both paths from $3,000 to $7,500 annual contributions with the same ages and return.
Year-1 Traditional tax savings scales with the deductible contribution; Roth tax savings stays $0.
Start with the scoreboard, then the contribution ladder, then myths and the decision framework shared with the hub.
Figures are calculated from our paycheck and Roth IRA engines — the same engines as the linked calculators.
IRS Publication 590-A — Contributions to Individual Retirement Arrangements →
IRS Publication 590-B — Distributions from Individual Retirement Arrangements →
IRS Topic No. 451 — Individual Retirement Arrangements (IRAs) →
Rank
#1
After-tax nest egg
$708,455.90
Year-1 tax savings
$0.00
Balance
$708,455.90
Contributions are after-tax — no year-1 AGI reduction — and qualified withdrawals are generally tax-free.
| Contribution / yr | Year-1 tax savings | Balance | After-tax nest egg |
|---|---|---|---|
| $3,000 | $0.00 | $283,382.36 | $283,382.36 |
| $5,000 | $0.00 | $472,303.93 | $472,303.93 |
| $6,500 | $0.00 | $613,995.11 | $613,995.11 |
| $7,500 | $0.00 | $708,455.90 | $708,455.90 |
$708,455.90
Same engine as the Roth IRA calculator
$708,455.90
Qualified withdrawal assumption
$615,152.26
Today’s effective income-tax rate stand-in
$93,303.64
Roth nest egg − Traditional nest egg on the headline vignette
$1,650.00
Same engine as the US paycheck calculator
$2,347.50
Same engines · CA state income tax
$62,202.43
Same ages and return; contribution scaled on the ladder
Leans Roth
If you expect to be in a higher tax situation in retirement than today, paying tax on contribution dollars now can look more attractive so qualified withdrawals stay tax-free.
Leans Roth
On this vignette Roth’s after-tax nest egg leads (≈ $708,455.90). Roth IRAs generally avoid lifetime RMDs for the original owner — a qualitative plus not quantified here.
Leans Traditional
If funding $7,500 is tight, Traditional’s modeled year-1 tax savings (≈ $1,650.00 in TX; ≈ $2,347.50 in CA) leaves more spendable cash after the same contribution.
Leans Traditional
If you expect lower taxable income in retirement than today, the deduction now may outweigh tax-free withdrawals later — still verify eligibility and use today’s stand-in only as a teaching tool.
Either / both
Many households hold both Roth and Traditional (or workplace equivalents) so future tax outcomes are not all-or-nothing. This hub compares pure paths on one vignette.
Either / both
MAGI phase-outs and workplace coverage can force a different choice than the scoreboard alone suggests — confirm with IRS Pub 590-A.
“Roth and Traditional end with the same after-tax money if rates never change.”
On equal dollar contributions, Roth’s nest egg is after-tax dollars growing tax-free, while Traditional’s balance is pre-withdrawal. Applying today’s 13.17% stand-in, Roth ≈ $708,455.90 vs Traditional ≈ $615,152.26.
“Roth always saves tax in year one.”
Roth contributions are after-tax — year-1 tax savings is $0 vs a no-contribution baseline on this hub.
“Traditional never helps cash-flow.”
On $100,000 single TX, a $7,500 deductible contribution models about $1,650.00 more in year-1 tax savings (cash edge vs Roth after funding the same contribution).
“This predicts my future tax bracket.”
No — Traditional after-tax nest egg uses today’s effective income-tax rate as a stand-in only. Future brackets, RMDs, and other rules can change the result.
“California and Texas look the same for Traditional.”
State income tax can make the Traditional deduction worth more year-one in CA (≈ $2,347.50) than in TX (≈ $1,650.00) on this salary and contribution.
“A higher account balance always means a better path.”
Both paths share the same modeled balance (≈ $708,455.90). The useful compare is after-tax nest egg and year-1 cash-flow, not the pre-tax balance alone.
“I can ignore eligibility and just pick Roth or Traditional.”
MAGI phase-outs, workplace plan coverage, and filing status can limit Roth contributions or Traditional deductibility — confirm with IRS Pub 590-A before treating this vignette as your case.
Both paths share ≈ $708,455.90 at retirement on the vignette. Compare after-tax nest egg and year-1 tax savings instead.
Roth contributions are after-tax — year-1 tax savings vs a no-contribution baseline is $0 on this model.
Today’s effective income-tax rate teaches the Traditional withdrawal haircut; it is not a prediction of your future bracket.
TX and CA can diverge materially on deductible-contribution tax savings even with the same salary and contribution.
Scoreboards assume the contribution is allowed and (for Traditional) deductible — real MAGI tests may differ.
Putting the same dollars into each IRA is not the same as equalizing take-home after funding. This hub only does the first.
Same dollars into the account each year; Roth pays tax up front, Traditional defers it.
Primary rank is after-tax nest egg; year-1 Traditional tax savings is a second lens for current cash-flow after equal contributions.
Today’s effective income-tax rate on $100,000 stands in for future Traditional withdrawal tax.
A deductible contribution can save more in CA than in TX because state tax amplifies the deduction.
Shared pre-withdrawal balance can hide a large after-tax gap once Traditional withdrawals are taxed.
You can understand the tax-timing trade-off here and still need Pub 590-A for MAGI and workplace-coverage tests.
If you expect higher rates later, Roth’s tax-free withdrawals can matter more; if lower, Traditional’s deduction may look better — this hub does not predict your path.
Income limits and workplace coverage can change deductibility or Roth contribution room.
401(k) Roth vs Traditional can follow similar tax-timing logic but different limits — see the blog if you contribute at work.
A raise, a move to a high-tax state, or retirement relocation can flip which scoreboard matters most.
Taxable Traditional withdrawals can interact with other retirement income; this hub excludes those interactions.
IRS pages and this hub do not replace a tax or financial professional.
See nest-egg vs year-1 cash-flow on equal contributions before opening an account.
Traditional’s year-1 tax savings can be larger where state income tax applies — compare TX vs CA in the FAQ and state-contrast section.
Same 7% growth path for 30 years — isolate tax timing, not market skill.
If funding the IRA squeezes the monthly budget, year-1 Traditional tax savings is the scoreboard to weigh carefully.
Engine-locked corridor with IRS Pub 590-A / 590-B sources.
Similar tax-timing logic appears in Roth vs Traditional 401(k) — see the related blog after you understand the IRA vignette.
Roth IRA calculator
Contribution limits and growth projection.
US paycheck calculator
Model deductible contributions and take-home.
401(k) & IRA limits by year
Annual contribution ceilings for workplace and IRA accounts.
Retirement taxes by state
How states treat Social Security and retirement income.
Social Security claim age
62 vs FRA vs 70 lifetime and breakeven compare.
Roth vs Traditional 401(k) paycheck
Workplace plan tax timing on your paycheck.
By Sammy S. · Founder · AuthorUpdated for 2026