Traditional or Roth? It’s a bet on tax rates.

Same dollars, same investments, one question: pay the tax now, or pay it later? Traditional gives you the deduction today; Roth gives you tax-free forever. Which one wins depends on your rate now versus your rate then — so that’s exactly what this compares.

Built on the current IRS limits — $7,500 under 50 / $8,600 at 50+ for 2026 — and Indiana’s 3.000% rate.

Your contribution

Contribution year

Your age

50 and up unlocks the higher limit.

Annual contribution

Your federal bracket today

Rate you expect in retirement

Your honest guess. RMDs and a paid-off house change this number in opposite directions.

Expected annual growth

Years until you use the money

20 years

State tax

Indiana county rate

Every county adds its own rate on top of the 3.000% — it’s on your county’s line of last year’s IT-40, or ask us. 0 to skip.

Covered by a retirement plan at work

Household income (MAGI) optional

Only used to flag the income phaseouts — high earners can lose the Traditional deduction or Roth eligibility.

Your comparison shows up here.

Age, contribution, your bracket now, your best guess for later — and the answer falls out.

The better bet

Traditional — deduct now, taxed later

Spendable in 20 years

The better bet

Roth — taxed now, tax-free later

Spendable in 20 years

The rate bet

—

today vs. retirement, incl. state tax

Total contributed

Advantage

Here’s how it lands

Your moves

Numbers without a next step are just trivia.

Estimate only — a Delta review is required before acting. The right answer also depends on things a calculator can’t weigh: whether you’ll actually invest the Traditional tax savings, what your heirs’ brackets look like, and whether a backdoor Roth fits your situation. We run the real numbers with you.

What this comparison assumes — out in the open

Same out-of-pocket both ways. The Traditional side gets credit for investing its tax savings in a side account each year — that’s the only fair way to compare, and most people skip it in real life. If you’d spend the refund instead, Roth wins by more than shown.
The side account grows untaxed here, which slightly flatters Traditional. In a real brokerage account, dividends and gains get taxed along the way.
Contribution limits: $7,000 / $8,000 (2025) and $7,500 / $8,600 (2026), under-50 / 50-plus, per the IRS. The tool caps your entry at the limit for your age and year.
Flat rates now and later — your bracket picks, plus the state layer you enter (Indiana 3.000% plus your county’s own rate — every county sets one, so you enter it rather than trust a stale table — or your own state’s rate) on both ends. Real retirement income climbs through brackets; that favors Traditional a bit for large balances.
Phaseouts are flagged, not computed: the Traditional deduction phases out for workplace-plan participants ($81,000–$91,000 single/HOH for 2026; $129,000–$149,000 when it’s your spouse who’s covered), and Roth eligibility phases out at $153,000–$168,000 single / $242,000–$252,000 joint (2026). Inside a phaseout band, the math gets personal — that’s a review.
Not modeled: RMDs on the Traditional balance (they force the tax question earlier than you’d like), the saver’s credit, spousal IRAs, and the backdoor Roth for high earners. All review items.

High earner, business owner, or just not sure? This is our favorite question.

The Traditional-vs-Roth call changes with your income, your entity, and every tax law rewrite — and the backdoor and mega-backdoor options never show up in a basic calculator. Send this over and we’ll give you the answer for your actual return, not a generic one.

Reach your Delta team at (260) 440-2747 or info@deltacpagroup.com and we’ll walk through it with you.

We are always happy to talk it through.

Thank you,
Amy Grego, CPA Delta CPA Group, LLC · (260) 440-2747