Roth or Traditional?
Don't guess which retirement account is better. This audit compares the "Tax Jump" between your current high-earning years and your future retirement lifestyle.
Roth vs. Traditional Optimization
Tax Jump Audit: Choosing the right account for your current vs. future bracket.
Tax Optimization Assessment
Traditional Wins.
Net Wealth Differential (Retirement)
$0
Traditional Ending
$0
Post-tax at withdrawal.
Roth Ending
$0
100% Tax-Free growth.
Strategic Breakdown
"Because your current tax rate is higher than your projected retirement bracket, the upfront deduction of a Traditional account wins."
The Mathematics of the "Tax Arbitrage"
Choosing between Roth and Traditional accounts is a bet on your future self.
The Traditional Bet
You believe your tax rate Today is higher than it will be when you withdraw the money. You want the tax break now to reinvest the savings.
Buy Today's DeductionThe Roth Bet
You believe your tax rate will be Higher in the future, or you want 100% certainty that the government won't take a cut of your growth later.
Lock in 0% Future TaxKey Fact: The $0 Standard Deduction
Remember that even in retirement, you get a "Standard Deduction" (approx $15,000 for individuals in 2026). This means your first $15k of Traditional withdrawals are essentially tax-free anyway. This weighted deduction often makes Traditional accounts surprisingly effective for the first portion of your retirement income.
The "Hidden" Catch
If you choose Traditional and SPEND the tax savings instead of investing them, Roth will almost always win. The Traditional strategy only outperforms when you take the money the IRS didn't collect today and put it to work.
The Smart Way to Roth
Betterment's automated IRAs help you decide between Roth and Traditional and automatically rebalance your portfolio as markets shift, ensuring your retirement stays on track.
Partner: Betterment