Traditional IRA Calculator

Start with your current age, intended retirement age, and life-expectancy assumption. Enter the current IRA balance and annual contribution, then set the expected return and inflation rate. The calculator models contributions before retirement and annual withdrawals afterward.

Add your filing status, modified adjusted gross income (MAGI), workplace-plan coverage, and tax rates to explore whether traditional IRA contributions may be deductible and how withdrawals might be taxed. The Roth comparison is a simplified estimate using the same contribution and return assumptions. The calculator does not replace an IRS eligibility check or a detailed tax projection.

The default case uses age 30, retirement at 65, life expectancy 90, a $10,000 current balance, $7,500 annual contributions, a 7% return, and 2.5% inflation. It assumes single filing, $65,000 MAGI, no workplace-plan coverage, a 22% current tax rate, and a 15% retirement tax rate.

The calculator projects $1,191,490 at retirement after 35 years. Its yearly table shows an initial-year balance of $18,200 at age 30: it adds $7,500 and applies $700 of growth to the starting $10,000.

First-year growth = starting balance × expected return
$10,000 × 0.07 = $700

First-year balance = starting balance + contribution + growth
$10,000 + $7,500 + $700 = $18,200

Over 35 years, the model records $262,500 in contributions. That amount is 35 years multiplied by the $7,500 annual input; it does not include the original $10,000 balance. The calculator reports $4,661,769 in total growth across its full projection through age 90, including growth during retirement. These totals are not simply the retirement-date balance minus contributions because the projection continues investing after retirement and includes withdrawals.

At age 65, the default projected balance is $1,191,490. The output reports $262,500 in total deductions, reflecting the model’s deductible contribution amount over the saving years—not a $262,500 tax refund or direct tax savings. Actual tax savings depend on eligibility and the marginal tax rate in each year.

The projection assumes an unchanged 7% annual return. Real investment returns vary, and losses early in retirement can affect the balance differently from a steady-return projection. Test multiple return assumptions and withdrawal levels rather than treating one balance as a forecast.

For 2026, the IRA contribution limit is $7,500 (IR-2025-111). People age 50 or older may contribute an additional $1,100, for a combined maximum of $8,600, subject to compensation and other eligibility rules. Contributions cannot exceed eligible taxable compensation, and the limit is shared across traditional and Roth IRAs.

The calculator defaults to a $7,500 annual contribution, which is the 2026 limit for someone under 50. Its age-30 first-year row shows that default.

Traditional IRA deductibility depends on income, filing status, and whether you or, in some cases, your spouse is covered by a workplace retirement plan. The IRS publishes annual deduction phase-outs; consult the current IRS IRA deduction rules rather than relying on an old threshold. The calculator’s deductible amount is a simplified estimate and may not capture every eligibility detail.

A deduction reduces taxable income; it is not a credit that reduces tax dollar for dollar. For example, if an eligible $7,000 contribution were fully deductible and the applicable marginal rate were 22%, the simple tax reduction would be $7,000 × 22% = $1,540. That illustration is not the calculator’s default result and actual tax savings may differ.

The table compares contribution totals only; it does not estimate the investment balance. Contribution limits can change, and age, compensation, and eligibility affect the amount you may contribute.

A traditional IRA may offer a deduction today, followed by taxable withdrawals in retirement. A Roth IRA generally uses after-tax contributions, with qualified distributions tax-free. Which approach is more favorable depends partly on today’s tax rate compared with the tax rate when money is withdrawn.

The default inputs use a 22% current tax rate and a 15% retirement tax rate, and the model reports the same $1,191,490 balance at retirement for its traditional and Roth balances. It also reports a $244,057 traditional side fund at retirement from modeled tax savings and a −$104,300 traditional net advantage. These comparison values depend on the calculator’s assumptions and should not be interpreted as a complete tax analysis. In particular, the calculator does not capture every difference in eligibility, tax timing, state taxes, or future tax-law changes.

A fair comparison includes what happens to the tax savings from a deductible traditional contribution. If those savings are spent rather than invested, the traditional balance alone may look larger than the total household resources available. If they are invested, their after-tax value matters. Review the traditional versus Roth IRA tax comparison and run a separate Roth IRA projection.

The calculator’s Roth model is simplified. It should not be treated as a tax-return calculation or as proof that one account type will outperform the other. You can also estimate the tax treatment of future distributions with the IRA withdrawal tax calculator and compare withdrawal amounts using the IRA withdrawal calculator.

The calculator applies the expected return to the balance during the accumulation phase, adds the contribution, and then projects annual withdrawals after retirement. The withdrawal target rises with inflation, so a $30,000 withdrawal in the first retirement year is not treated as $30,000 in every future year.

At the default 2.5% inflation rate, the model’s age-90 row shows a withdrawal of $55,618 and an estimated $8,343 tax on that withdrawal, using the assumed 15% retirement tax rate. It projects a balance of $3,853,918 at age 90. This large ending balance follows from the model’s 7% annual return assumption and should not be taken as a likely outcome or guaranteed amount.

The tool reports that the balance lasts through age 90, the entered horizon. That does not establish that a withdrawal plan is safe for a longer life or during poor market returns. Use a retirement withdrawal projection and a retirement drawdown calculator to test alternative withdrawal paths.

Traditional IRA owners generally must take required minimum distributions (RMDs) starting at age 73 under current federal law. The starting age rises to 75 in 2033 for people covered by that change. RMDs are generally taxable as ordinary income. The default calculator’s fixed annual withdrawal is not an RMD calculation: it does not ensure that each withdrawal meets the IRS minimum or use the applicable life-expectancy divisor.

If you withdraw less than the required amount, an excise tax may apply to the shortfall. The general penalty is 25%, potentially reduced to 10% if the shortfall is corrected within the correction window. Review the IRS RMD guidance, the RMD calculation walkthrough, or the inherited IRA RMD calculator for inherited-account rules.

A withdrawal before age 59½ may also be subject to a 10% additional tax unless an exception applies, in addition to ordinary income tax on a taxable traditional IRA distribution. The calculator does not estimate this early-distribution penalty. Use the IRA early withdrawal penalty calculator if you are evaluating an early withdrawal.

The accumulation phase uses an annual return and a contribution amount. In the provided computation, the return is applied to the current balance and the contribution is then added.

Annual investment growth = current balance × expected return ÷ 100

New accumulation balance = current balance + annual contribution + annual investment growth

During retirement, the withdrawal amount is adjusted for inflation, limited to the available balance, and tax is estimated from the entered retirement tax rate.

Inflation-adjusted withdrawal = annual withdrawal × (1 + inflation rate)^years retired

Estimated withdrawal tax = withdrawal × retirement tax rate ÷ 100

The results depend on a fixed annual return and do not simulate market volatility, tax-bracket changes, contribution eligibility in every future year, or actual RMD amounts. Use the table as a scenario model and review each input before relying on a result.

First, set the annual contribution to an amount allowed by the current-year limit and your compensation. Then verify whether the contribution is deductible using the IRS rules that match your filing status, MAGI, and workplace-plan coverage.

Next, compare the current and retirement tax-rate assumptions. If you expect higher income in retirement, a traditional IRA may not produce the same tax advantage as the default rates suggest. Consider how Social Security, pensions, and other account withdrawals could affect taxable income; a tax-efficient retirement withdrawal guide can help frame the sequence question.

Finally, test a lower expected return, a higher inflation rate, and a longer lifespan. Include other retirement savings separately, such as a TSP growth projection or a retirement income estimate. If you have inherited funds, use the inherited IRA distribution calculator rather than applying the owner-account assumptions.

Is the $7,500 default contribution allowed in 2026?

Yes, for someone under 50. The 2026 IRA limit is $7,500, and people age 50 or older can add a $1,100 catch-up, for $8,600. Compensation can set a lower personal limit.

Does “total deductions” mean the amount I save on taxes?

No. The result represents the model’s estimated deductible contributions, not the amount of tax avoided. A deduction reduces taxable income; the tax savings depend on the applicable marginal rate and whether the contribution is deductible.

Is a traditional IRA contribution always deductible?

No. Deductibility can depend on income, filing status, and workplace-plan coverage. A contribution can be allowed even if it is not deductible. Check the IRS deduction limits for the tax year and your circumstances.

Does the calculator include RMDs?

No. It models the annual withdrawal input adjusted for inflation; it does not calculate the required minimum distribution. Traditional IRA owners generally begin RMDs at 73, with the statutory change to 75 in 2033 applying to covered people.

Can the projected balance be treated as guaranteed?

No. The balance is based on a fixed assumed annual return. Actual investment performance varies, and the projection does not model market losses or their sequence.

Is Roth always better if my retirement tax rate is higher?

Not necessarily. Tax rates, contribution eligibility, withdrawal timing, investment of tax savings, and future tax law all affect the comparison. Compare household after-tax resources rather than account balances alone.

What happens if I withdraw before age 59½?

A taxable early IRA distribution may owe ordinary income tax and a 10% additional tax unless an exception applies. This calculator does not include that penalty.

Can this projection determine whether I have enough to retire?

No. It models one account and a withdrawal assumption. Combine it with other assets, income, healthcare expenses, and spending estimates using a retirement needs calculator and a retirement goal calculator.

Use the calculator to test IRA contribution and withdrawal scenarios, then verify contribution eligibility, deductions, and RMDs using current IRS guidance.