Roth vs. Traditional IRA Time Machine

Mathematically prove whether you should take the tax deduction today (Traditional) or lock in tax-free growth for retirement (Roth).

1. Investment & Time Parameters

Pre-Tax Monthly Budget$1,000 / mo

Years Until Retirement25 Years

Expected Annual Return8.0%

2. Tax Rate Variables

Current Marginal Tax Rate (Pay Now)24.0%

Federal bracket your last dollar falls into today.

Expected Retirement Effective Tax (Pay Later)15.0%

Average tax rate across your entire income in retirement.

3. Net Wealth Audit (At Retirement)

Metric	Traditional 401(k)/IRA	Roth 401(k)/IRA
Actual Monthly Contribution	$0 (Pre-Tax)	$0 (Post-Tax)
Gross Balance Before Exit	$0	$0
Taxes Deducted at Retirement	-$0	$0 (Tax-Free)
Final Spendable Net Wealth	$0	$0