⚠️ Calculator Disclaimer
This calculator provides educational estimates for illustrative purposes only. It uses simplified tax calculations and does not account for all tax situations, deductions, credits, or income sources. Actual results will vary based on your complete financial picture. This is not tax or financial advice. Consult a qualified tax professional or financial advisor for personalized guidance.
Roth vs. Traditional Calculator
See which account type puts more money in your pocket at retirement
Coach Marty says:
If your district offers a Roth version of your 403(b) or 457(b), this calculator helps you decide whether Traditional or Roth makes more sense for your situation. Not sure what the Roth option even is? Module 2 breaks it down. The short version: Traditional saves you on taxes now. Roth saves you on taxes later. Plug in your numbers and let the math decide.
If your district offers a Roth version of your 403(b) or 457(b), this calculator helps you decide whether Traditional or Roth makes more sense for your situation. Not sure what the Roth option even is? Module 2 breaks it down. The short version: Traditional saves you on taxes now. Roth saves you on taxes later. Plug in your numbers and let the math decide.
Your Side-by-Side Comparison
🔵 Traditional 403(b)/457(b)
Tax break
Now (when you contribute)
Monthly out-of-pocket
-
Total contributed
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403b/457b balance at retirement
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Taxes owed on withdrawal
-
Total after-tax wealth
Includes reinvested tax savings -
Includes reinvested tax savings -
🟢 Roth 403(b)/457(b)
Tax break
Later (when you withdraw)
Monthly out-of-pocket
-
Total contributed
-
403b/457b balance at retirement
-
Taxes owed on withdrawal
-
Total after-tax wealth
All tax-free -
All tax-free -
📈 The Key Numbers
Difference in after-tax retirement money
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Your current combined tax rate
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Your expected retirement combined tax rate
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Break-even retirement tax rate
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🎯 What This Means for You
💡 The General Rule of Thumb
Choose Roth when: You expect to be in a higher tax bracket in retirement, you're early in your career (lower salary now), or you want tax-free income flexibility in retirement.
Choose Traditional when: You expect to be in a lower tax bracket in retirement, you're in your peak earning years, or you need the tax break now to free up cash flow.
Can't decide? Many financial experts suggest splitting contributions — put some in Traditional and some in Roth. This gives you tax diversification and flexibility in retirement.
Coach Marty says:
Here's the truth — the "best" choice depends on the future, and nobody has a crystal ball. What matters most is that you're saving. A teacher contributing to the "wrong" account type is still 1,000 times better off than a teacher not contributing at all. Don't let this decision paralyze you!
Here's the truth — the "best" choice depends on the future, and nobody has a crystal ball. What matters most is that you're saving. A teacher contributing to the "wrong" account type is still 1,000 times better off than a teacher not contributing at all. Don't let this decision paralyze you!
Next Steps:
1
Check if your district offers a Roth option
Not all 403(b) and 457(b) plans have a Roth option. Ask HR or your plan vendor.
2
Consider splitting your contributions
You can put some in Traditional and some in Roth within the same plan. Tax diversification is a smart strategy.
3
Re-evaluate as your career progresses
Your ideal mix may shift as your salary and tax bracket change over the years.