RetirementMetric Scenario Guide

Roth vs. Traditional at $125,000 Income

Roth vs. Traditional at $125,000 Income. Compare concrete planning scenarios, assumptions and next steps with RetirementMetric calculators.

Same contribution, different tax timing

At $125,000 of annual income, the Roth-versus-Traditional decision depends on your marginal tax rate now versus the tax rate that ultimately applies to withdrawals. Account eligibility and deduction rules also matter.

A neutral growth illustration

If $7,000 per year were invested for 25 years at a hypothetical 7%, the account could grow to about $472,542 before considering the different tax treatment. The investment growth math is the same; the tax timing is not.

Questions to compare

Would the Traditional contribution reduce taxable income today? Do you expect higher or lower taxable income in retirement? Will required distributions, Social Security taxation or state taxes affect the result? Use the calculator as a starting point and verify current tax rules before acting.

Educational illustration only, not individualized financial, tax or investment advice. Investment returns are not guaranteed.