Retirement

Traditional IRA Calculator

A traditional IRA flips the Roth trade: you deduct contributions now and pay income tax later, when you withdraw. Project the pre-tax balance your contributions could reach, see the tax deduction you'd claim this year, and estimate what's left after retirement taxes — all against the 2026 contribution limit of $7,500.

Formula shown below · Checked against published figures for 2026How we verify

Annual contribution

2026 limit: $7,500 ($8,600 with the age-50+ catch-up).

Current traditional IRA balance

Current age

Retirement age

Expected annual return

Your marginal tax rate today

The rate on your last dollar of income — sets how much each contribution saves in tax.

Estimated tax rate in retirement

The effective rate you expect on withdrawals. Often lower than today's, since retirement income is usually lower.

Pre-tax balance at 65

$1,298,252

Tax deduction this year: $1,650
After-tax value in retirement: $1,103,514
Tax-deferred growth: $1,020,752
Total contributions: $277,500

Growth by age

Age	Balance	Tax-deferred growth
35	$66,010	$13,510
40	$138,323	$48,323
45	$240,836	$113,336
50	$386,160	$221,160
55	$592,176	$389,676
60	$884,230	$644,230
65	$1,298,252	$1,020,752

Compare scenariosTry three values of one input

Vary

Traditional IRA Calculator results for three values of Annual contribution
Annual contribution
Pre-tax balance at 65	$1,193,196	$1,298,252+$105,056	$1,418,328+$225,132
Tax deduction this year	$1,496	$1,650+$154	$1,826+$330
After-tax value in retirement	$1,014,216	$1,103,514+$89,298	$1,205,578+$191,362
Tax-deferred growth	$940,194	$1,020,752+$80,558	$1,112,826+$172,632
Total contributions	$253,001	$277,500+$24,499	$305,501+$52,500

Every other input stays at the value you set above — currently $7,500 for annual contribution. Differences are measured against the first column.

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How this calculator works

Contributions are spread monthly and compounded at your expected return in exact cents — the same tax-deferred growth as any pre-tax account. 'Tax-deferred growth' is the projected balance minus everything you contributed.

The tax deduction is your contribution times your marginal rate today. The withdrawal tax applies your estimated retirement rate to the whole projected balance — a planning simplification: real withdrawals are spread across years and stack progressively through the brackets, so treat 'after-tax value' as a directional estimate, not a filing figure.

The 2026 limits come from IRS Notice 2025-67 (verified July 2026). Deduction phase-outs (for those covered by a workplace plan) and RMDs are not modeled. This is an educational projection, not tax advice.

Formula

Deduction = min(C, L) × t_now
FV        = B(1+i)ⁿ + min(C, L) × ((1+i)ⁿ − 1) ÷ i
After-tax = FV × (1 − t_later)

C: Your annual contribution
L: Annual IRA contribution limit, shared across all your IRAs
t_now: Your marginal rate today — what the deduction is worth
t_later: Your expected rate in retirement
B: Current balance
i: Expected annual return, as a decimal
n: Years of contributions

When t_now equals t_later the after-tax result is identical to a Roth funded with the same pre-tax cost — the accounts differ only because the contribution limit applies to the nominal amount, which lets a Roth shelter more.

What this assumes

A constant annual return with contributions continuing at the amount entered, up to the limit shared across all your IRAs.
The deduction is assumed available. It phases out by income if you or a spouse are covered by a workplace plan — losing it makes the contribution non-deductible, not impossible.
Withdrawals are taxed at the retirement rate you enter, and required minimum distributions begin at 73 or 75 depending on birth year.

What changes this number

Your rate now versus later: Decides whether the upfront deduction beats tax-free withdrawals. At equal rates the two accounts are identical.
Whether the deduction applies: A non-deductible contribution must be tracked on Form 8606, or the basis is lost and taxed twice.
Required minimum distributions: Force withdrawals from 73 regardless of need, which can push other income into a higher bracket.

A worked example

Take the max it from 30 to 65 scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Annual contribution: $7,500
Current traditional IRA balance: $0
Current age: 30 years
Retirement age: 65 years

What it returns

Pre-tax balance at 65: $1,125,659
Tax deduction this year: $1,650
After-tax value in retirement: $956,810
Tax-deferred growth: $863,159
Total contributions: $262,500

Sources

IRS Notice 2025-67 (2026 retirement plan limitations)
Published November 2025 · Figures last verified July 2, 2026

Calculator last reviewed August 8, 2026. How we verify

Try an example

Max it from 30 to 65 Higher bracket now, lower later 50+ with catch-up

Frequently asked questions

How much can I contribute to a traditional IRA in 2026?

$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.

Is my traditional IRA contribution tax-deductible?

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.

Traditional or Roth IRA — which is better?

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.

When do I have to pay tax and take withdrawals?

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.

Can I have a traditional IRA and a 401(k)?

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.

This calculator helps answer

Roth or traditional — which should I use?

The usual framing asks whether your tax rate is higher now or later. That is correct but incomplete, and it hides the reason a Roth is often the better account even at identical rates.