About the Traditional IRA Calculator
This traditional IRA calculator projects the value of a tax-deductible IRA at retirement and shows both sides of the tax trade-off: the income tax you save today on each contribution, and the tax you will owe when you withdraw the money later. Enter your balance, yearly contribution, expected return and your current and expected retirement tax rates.
It is useful for anyone deciding whether to use a traditional IRA or a Roth, estimating how much a deduction is worth this year, or checking how large a rollover IRA might grow. The chart splits the balance into contributions and growth, and the after-tax value shows what you could actually spend.
The 2026 contribution limit is $7,500 ($8,600 at 50+), shared with any Roth IRA. Contributions are assumed deductible — if you are covered by a workplace plan, the 2026 deduction phases out between $81,000 and $91,000 of modified AGI for single filers and $129,000–$149,000 for married couples filing jointly ($242,000–$252,000 if only your spouse is covered). Contributions are spread monthly and returns compound monthly; figures are not adjusted for inflation.
With the default inputs, the ira balance at retirement (pre-tax) is $965,394.31. Change any value above to recalculate instantly.
How to use the traditional ira calculator
- 1Enter your age, retirement age and current IRA balance.
- 2Enter your yearly contribution (up to the IRS limit).
- 3Set an expected annual return.
- 4Enter your marginal tax rate today and the rate you expect in retirement.
- 5Compare the pre-tax balance, after-tax value and yearly tax savings.
Formula and method
The starting balance B compounds monthly at the annual return r for n years, and the yearly contribution C is invested in twelve equal monthly deposits. Because the money has never been taxed, the whole balance is taxed as ordinary income when withdrawn, so the after-tax value multiplies it by (1 − retirement tax rate).
The deduction value is contribution × current marginal rate — the tax you avoid each year by contributing. Comparing your current and retirement tax rates is the core of the traditional vs Roth decision: the traditional IRA wins when today’s rate is higher.
- B
- Current IRA balance
- C
- Annual deductible contribution
- r
- Expected annual return (decimal)
- n
- Years until retirement
- t_ret
- Tax rate on withdrawals in retirement
Worked examples
35-year-old contributing $7,500 a year until 65
A $25,000 balance plus $7,500 a year for 30 years at 7% grows to about $965,394. After a 22% tax rate on withdrawals it is worth about $753,008 to spend, and the deduction saves $1,800 of tax every year you contribute.
50-year-old with catch-up contributions
Contributing the $8,600 catch-up limit for 17 years at 6% on top of $120,000 reaches about $585,088. At a 32% bracket each contribution saves $2,752 now, while withdrawals are expected to be taxed at only 22%.
Frequently asked questions
How much can I contribute to a traditional IRA in 2026?+
Up to $7,500, or $8,600 if you are 50 or older, across all your traditional and Roth IRAs combined. Your contribution also cannot exceed your taxable compensation for the year, though a spousal IRA can use a working spouse’s income.
Is my traditional IRA contribution tax-deductible?+
It is fully deductible if neither you nor your spouse is covered by a workplace retirement plan. If you are covered, the 2026 deduction phases out between $81,000 and $91,000 of modified AGI (single) or $129,000 and $149,000 (married filing jointly); above the range you can still make a non-deductible contribution.
When can I withdraw from a traditional IRA?+
Withdrawals are penalty-free from age 59½ and taxed as ordinary income. Earlier withdrawals generally add a 10% penalty unless an exception applies, such as a first-time home purchase (up to $10,000), qualified education costs, or substantially equal periodic payments.
Traditional or Roth IRA — which is better?+
Choose traditional when your tax rate today is higher than you expect in retirement, since you deduct at the high rate and withdraw at the low one. Choose Roth when you expect the same or a higher rate later, or want tax-free income and no RMDs.
Do traditional IRAs have required minimum distributions?+
Yes. You must start taking RMDs in the year you turn 73 (75 if you were born in 1960 or later). The amount is your prior year-end balance divided by an IRS life-expectancy factor.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.