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Traditional IRA vs Roth IRA

Your filing status
Your tax filing status determines contribution limits and eligibility. For 2025, single filers can't contribute to a Roth IRA if earning above $165,000, and joint filers above $246,000.
Your current age
Your current age determines catch-up contribution eligibility (age 50+) and projection timeline.
The age you plan to retire
When you plan to retire and begin withdrawing from your IRA.

Employer Plan Participation Impact

Participating in an employer-sponsored retirement plan (such as a 401(k), 403(b), or pension plan) can limit your traditional IRA deduction based on your income level.

What Counts as Employer Plan Participation:
  • 401(k), 403(b), or 457 plans
  • Traditional pension plans
  • SEP-IRA or SIMPLE IRA plans
  • Government retirement plans
Impact on Traditional IRA Deductions:
No Employer Plan:
Full deduction regardless of income
With Employer Plan:
Deduction phases out based on MAGI thresholds
Roth IRA Impact:

Employer plan participation does NOT affect Roth IRA eligibility. Roth IRA limits are based solely on income, regardless of workplace retirement plan participation.
Modified Adjusted Gross Income

Tax Deductibility of IRA Contributions (Tax Year 2025)

Filing Status: Single
Modified Adjusted Gross Income (MAGI)
Allowable Deduction
No Employer Plan Participation
Any amount
Full deduction up to contribution limit
With Employer Plan Participation
$77,000 or less
Full deduction up to contribution limit
Between $77,000 and $87,000
A partial deduction based on your MAGI
$87,000 or more
No deduction
Filing Status: Married Filing Jointly
Modified Adjusted Gross Income (MAGI)
Allowable Deduction
Neither Spouse Participates in Employer Plan
Any amount
Full deduction up to contribution limit
You Participate in Employer Plan
$123,000 or less
Full deduction up to the lesser of $7,000 ($8,000 if you're 50 or older) of your taxable compensation
Between $123,000 and $143,000
A partial deduction based on your MAGI
$143,000 or more
No deduction
Spouse Participates in Employer Plan
$236,000 or less
Full deduction up to the lesser of $7,000 ($8,000 if you're 50 or older) of your taxable compensation
Between $236,000 and $246,000
A partial deduction based on your MAGI
$246,000 or more
No deduction
Filing Status: Married Filing Separately
Modified Adjusted Gross Income (MAGI)
Allowable Deduction
No Employer Plan Participation
Any amount
Full deduction up to contribution limit
With Employer Plan Participation
Less than $10,000
A partial deduction based on your MAGI
$10,000 or more
No deduction
Filing Status: Head of Household
Modified Adjusted Gross Income (MAGI)
Allowable Deduction
No Employer Plan Participation
Any amount
Full deduction up to contribution limit
With Employer Plan Participation
$77,000 or less
Full deduction up to contribution limit
Between $77,000 and $87,000
A partial deduction based on your MAGI
$87,000 or more
No deduction

Note: These limits are for Tax Year 2025. Actual deductions may be further limited by your earned income.
How much you plan to contribute each year

IRA Contribution Limits for 2025

Age Group
Annual Contribution Limit
Under 50
$7,000
50 and older
$8,000 (includes $1,000 catch-up)
Important Notes:
  • Traditional vs Roth: The $7,000/$8,000 limit applies to your total IRA contributions across all Traditional and Roth IRAs
  • Income Limits: Your ability to contribute to a Roth IRA phases out at higher income levels
  • Deduction Limits: Traditional IRA deduction limits depend on your income and whether you participate in an employer plan
  • Earned Income Requirement: You can only contribute up to the amount of your earned income for the year

Tip: If you're age 50 or older, don't forget to take advantage of the additional $1,000 catch-up contribution!
Expected annual investment return
Expected annual investment return. Historical stock market average is around 7-10%.
Your current federal tax bracket

Federal Income Tax Brackets for 2025

Your current federal income tax bracket determines:

  • How much you save with Traditional IRA/401(k) contributions
  • The tax benefit of other pre-tax retirement contributions
  • Comparison baseline for retirement tax planning
Tax Rate
Taxable Income Range
10%
Up to $11,925 (Single) / $23,850 (Married Filing Jointly)
12%
$11,926 - $48,475 (Single) / $23,851 - $96,950 (Married Filing Jointly)
22%
$48,476 - $103,350 (Single) / $96,951 - $206,700 (Married Filing Jointly)
24%
$103,351 - $197,300 (Single) / $206,701 - $394,600 (Married Filing Jointly)
32%
$197,301 - $250,525 (Single) / $394,601 - $501,050 (Married Filing Jointly)
35%
$250,526 - $626,350 (Single) / $501,051 - $751,600 (Married Filing Jointly)
37%
$626,351+ (Single) / $751,601+ (Married Filing Jointly)

Note: These are marginal tax rates. You pay each rate only on income within that bracket range.
Expected federal tax bracket in retirement
Expected tax bracket in retirement. This affects Traditional IRA withdrawal taxes.

Results

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Traditional vs Roth IRA Projection

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