IRA Ending Value Calculator
Calculator
Inputs
Traditional vs Roth
Traditional IRA contributions may be deductible today and grow tax-deferred. You pay ordinary income tax on withdrawals. Roth contributions are made with after-tax dollars and qualified withdrawals are tax-free. The right answer depends on whether you expect to be in a higher or lower bracket in retirement than you are now.
For most NYC professionals in their peak earning years, the Traditional deduction is more valuable today because the marginal rate is high. For younger clients early in their career, the Roth almost always wins. The income phaseouts for deducting a Traditional IRA when you (or a spouse) have a workplace plan are the real complication – and the reason we get questions about backdoor Roth strategies every March.
2025 limits per IRS Publication 590-A: $7,000 contribution, $8,000 if age 50+. Income phaseouts for Roth contributions begin at $150K single / $236K MFJ.
What this calculator does not handle
Roth conversions, backdoor Roth strategy, mega backdoor Roth through a workplace plan, inherited IRAs (10-year rule under SECURE Act), and the deduction phaseout for Traditional contributions when you are covered by a 401(k) at work. Those are conversations rather than calculations. We work through them with high-net-worth clients and business owners every fall during year-end planning.
The deduction the calculator estimates for the Traditional is only available if you (and a spouse, if applicable) are under the income phaseout, or are not covered by a workplace retirement plan.
Traditional, Roth, or both?
Most clients we onboard are doing some version of the wrong thing. We re-allocate.