Traditional IRA versus Roth IRA at Retirement Traditional IRA
Roth IRA
Sheltered
$119,694.53
$95,062.16
Non-sheltered
$6,486.04
$0.00
Total before taxes
$126,180.57
$95,062.16
Total after taxes
$108,226.39
$95,062.16
Calculator results detail
When you invest money in a Roth IRA account, you pay taxes on your investment today, but you do not pay taxes when you withdraw the funds. If you convert your Traditional IRA account to a Roth IRA account today, you would pay $2,800.00 in taxes. To keep the comparison fair, the non conversion figure assumes you take the same amount and place it in a non-sheltered account until you retire.
Comparison details From annual contributions
Traditional IRA
Roth IRA
Total contribution before taxes
$3,000.00
$3,000.00
Sheltered IRA contribution, before taxes
$3,000.00
$3,000.00
Sheltered IRA contribution, after taxes
$3,000.00
$2,160.00
Non-sheltered contribution, before taxes
$0.00
$0.00
Non-sheltered contribution, after taxes
$0.00
$0.00
Total tax sheltered IRA, at retirement
$87,972.84
$63,340.47
Total non-sheltered, at retirement
$0.00
$0.00
From IRA conversion
Traditional IRA
Roth IRA
Total amount to convert
$0.00
$10,000.00
Tax due on conversion
$0.00
$2,800.00
Total tax sheltered IRA, at retirement
$31,721.69
$31,721.69
Total non-sheltered, at retirement
$6,486.04
$0.00
