Traditional IRA Calculator
A traditional IRA gives a tax deduction now and tax-deferred growth — you pay income tax only when you withdraw in retirement. A $7,000 contribution at a 22% rate saves $1,540 on this year's tax bill, while the money compounds untouched for decades.
How to use this calculator
- Enter your taxable income.
- Enter filing status.
- Enter annual contribution.
- Enter expected annual return.
- Enter years until retirement.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Your contribution is deducted from this year's income, saving tax at your marginal rate. The money then grows tax-deferred — no tax on dividends, interest, or gains along the way — until withdrawals, which are taxed as ordinary income. Worked example: $7,000 a year at 7% for 25 years grows to about $472,500 before tax; at a 22% retirement rate that is about $368,600 after tax — and the deductions were worth $1,540 a year along the way.
Frequently asked questions
What is the 2026 IRA contribution limit?
$7,000 for 2026 ($8,000 for age 50+, including the $1,000 catch-up), shared across all your traditional and Roth IRAs combined.
Can I deduct the contribution if I have a 401(k)?
Yes, but the deduction phases out at higher incomes if you (or your spouse) have a workplace plan. If you can't deduct, a Roth IRA or backdoor Roth is often the better move.
Traditional vs Roth — which is better?
Traditional wins if you expect a lower tax rate in retirement (the deduction now is worth more than the tax later). Roth wins if you expect to be in the same or a higher bracket. Many people split contributions across both.
Is there an income limit for contributing?
Anyone with earned income can contribute up to the 2026 limit ($7,000, or $8,000 at 50+). What phases out at higher incomes is the deduction when you or your spouse has a workplace plan — the IRA deduction phase-out calculator shows the exact ranges.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.