💰 Individual Retirement Account
IRA Calculator
Project your Traditional IRA balance, calculate annual tax deduction savings, estimate Required Minimum Distributions, and compare IRA types side by side.
2026 IRA Limits
Contribution (Under 50)$7,000
Catch-Up (Age 50+)$8,000
RMD Age73
SEP-IRA Limit$70,000
SIMPLE IRA$16,500
Traditional IRA Calculator
Pre-tax growth with deduction savings
Your Information
$
$
%
Tax Rates
TRADITIONAL IRA BALANCE AT RETIREMENT
$892,000
At age 65 · Gross value before withdrawal taxes
After-Tax (at 12%): $785,000
$210K
Total Contributed
$662K
Pre-Tax Growth
$785K
After-Tax Value
$2,973
Monthly (4% rule)
💰 Annual Tax Deduction Savings
$1,540/yr
Tax Saved This Year
$46,200
Total Tax Saved (30yr)
22%
Current Tax Rate
📋 IRA Types Comparison
| Feature | 🟤 Traditional IRA | 🟣 Roth IRA | 🔵 SEP-IRA | 🟢 SIMPLE IRA |
|---|
📈 Traditional IRA Growth: Pre-Tax Accumulation
📋 Year-by-Year Traditional IRA Schedule
| Age | Contribution | Growth | Gross Balance | Tax Deduction Saved | After-Tax Value |
|---|
Understanding Traditional IRAs and RMDs
A Traditional IRA offers immediate tax deductions on contributions and tax-deferred growth — you pay taxes only when you withdraw in retirement. Our IRA calculator shows your projected balance, annual tax savings, after-tax value, and Required Minimum Distribution schedule. Compare all IRA types and understand the RMD impact. For tax-free growth, see our Roth IRA calculator. For broader retirement planning, use our retirement calculator and 401(k) calculator.
💰 Traditional IRA Key Benefits
- Tax deduction now: Contributions may reduce taxable income
- Tax-deferred growth: No tax on dividends, interest, or capital gains annually
- Flexible investing: Stocks, bonds, ETFs, mutual funds, CDs, REITs
- Anyone with earned income: No income limit to contribute (deductibility has limits)
- Best if: You're in a high tax bracket now and expect lower taxes in retirement
- Penalty-free withdrawals from age 59½
📅 Required Minimum Distributions
- RMD age: Must start withdrawals at age 73 (SECURE Act 2.0)
- Formula: Account balance ÷ IRS Uniform Lifetime Distribution Period
- Age 73 divisor: ~27.4 (withdrawal rate ~3.65%)
- Age 80 divisor: ~20.2 (withdrawal rate ~5%)
- Penalty: 25% excise tax on any shortfall (reduced to 10% if corrected)
- Roth IRA: No RMDs — another advantage of Roth
⚠️ IRA Deductibility Income Limits (2026)
- Single, workplace plan: Full deduction ≤ $79,000 MAGI
- Single, workplace plan phase-out: $79,000 – $89,000
- Married filing jointly, covered: Full ≤ $126,000
- MFJ phase-out: $126,000 – $146,000
- Spouse covered, you're not: $236,000 – $246,000
- No workplace plan = full deduction at any income
🔄 IRA Rollover Options
- 401(k) → Traditional IRA: Keep tax-deferred status; more investment options
- Traditional IRA → Roth IRA: Conversion — pay tax now, tax-free forever
- 60-day rule: Indirect rollovers must be completed within 60 days
- Direct transfer: Trustee-to-trustee — no tax or penalty
- Once-per-year rule: Only one IRA-to-IRA rollover per 12 months
- Use our Roth IRA calculator to model conversion benefits
Frequently Asked Questions
Traditional IRA: contributions may be tax-deductible now; growth is tax-deferred; withdrawals in retirement are taxed as ordinary income; RMDs required at 73. Roth IRA: contributions are after-tax (no deduction); growth is completely tax-free; qualified withdrawals are tax-free; no RMDs. Choose Traditional if you expect lower taxes in retirement; choose Roth if you expect higher taxes. Many financial advisors recommend having both for tax diversification. See our Roth IRA calculator for a direct comparison.
Yes — you can contribute to both in the same year. The limits are separate: $23,500 for 401(k) in 2026, and $7,000 for IRA. However, if you (or your spouse) have a workplace retirement plan, the Traditional IRA tax deductibility phases out at moderate income levels. Even without deductibility, you can still make a non-deductible Traditional IRA contribution and later convert it to a Roth (backdoor Roth) — especially useful for high earners. Use our 401(k) calculator alongside this tool for complete retirement planning.
Under SECURE Act 2.0 (effective 2023), RMDs begin at age 73 for anyone who turns 72 after December 31, 2022. Your first RMD can be delayed until April 1 of the year following the year you turn 73, but you'll then owe two RMDs that tax year. The RMD amount is calculated by dividing your account balance (as of December 31 of the prior year) by the IRS Uniform Lifetime Table distribution period for your age. Failure to take the full RMD results in a 25% excise tax on the shortfall (reduced to 10% if corrected in time). Use the RMD tab above to calculate your schedule.
A SEP-IRA (Simplified Employee Pension) is designed for self-employed individuals and small business owners. You can contribute up to 25% of net self-employment income or $70,000 in 2026, whichever is less — much more than a Traditional or Roth IRA. Contributions are tax-deductible and grow tax-deferred. If you have employees, you must contribute the same percentage for them as you do for yourself. The SEP-IRA is simple to set up with no annual filing requirements, making it ideal for freelancers, consultants, and solo business owners.
IRA assets pass directly to your named beneficiaries, bypassing probate. Spouse beneficiaries can treat the IRA as their own and delay RMDs. Non-spouse beneficiaries (under SECURE Act) must generally withdraw all assets within 10 years of the account holder's death. Roth IRA inheritance is tax-free for beneficiaries — a major estate planning advantage. Traditional IRA inheritance is taxable as beneficiaries withdraw. Always keep beneficiary designations updated, as they supersede your will for IRA assets.