Traditional IRA Calculator

$7,500 for 2026, plus a $1,100 catch-up if you're 50 or older (IRS Notice 2025-67). That limit is shared across all your traditional and Roth IRAs combined — it's a single bucket, not one each — and you need earned income at least equal to your contribution.

It depends. If neither you nor your spouse is covered by a workplace retirement plan, the full contribution is deductible at any income. If you (or a spouse) are covered, the deduction phases out over income ranges that adjust each year — above the top of the range you can still contribute, just without the deduction. This calculator assumes you qualify for the full deduction; check the current IRS thresholds for your filing status.

It comes down to when you'd rather pay the tax. Traditional deducts now and taxes withdrawals as ordinary income; Roth is funded with after-tax dollars but withdrawals — contributions and growth — are tax-free after 59½. The rule of thumb: if you expect a lower tax rate in retirement than today, traditional tends to win; if higher, Roth does. Many savers split the two to hedge.

Every dollar you withdraw is taxed as ordinary income, and withdrawals before age 59½ generally add a 10% penalty (with exceptions). Traditional IRAs also carry required minimum distributions (RMDs) starting at age 73 — the IRS makes you draw the account down on a schedule, unlike a Roth IRA, which has no lifetime RMDs.

Yes — the contribution limits are separate, so you can max both. But being covered by a 401(k) can reduce or eliminate your traditional IRA deduction above certain income levels. If your deduction is phased out, a Roth IRA (or the 'backdoor Roth' for high earners) is often the better home for those dollars.