Traditional IRA
$0
After-tax value
Roth IRA
$0
Tax-free value
Tax Flow Comparison
Contribution
$7,000
$5,320
Tax savings now
+$1,680
$0
Growth (30 years)
$49,000
$49,000
Final balance
$56,000
$56,000
Tax in retirement
-$12,320
$0
Net to you
$43,680
$42,160