Traditional IRA
A traditional IRA is a tax-deferred retirement account you open yourself. Contributions may be tax-deductible now, the balance grows without yearly taxes, and withdrawals in retirement are taxed as ordinary income. It's the mirror image of a Roth IRA, which taxes you now instead of later.
The 2026 limit is $7,500, plus a $1,100 catch-up from age 50, and it is shared across all your IRAs rather than applying to each. Anyone with earned income may contribute; whether the contribution is deductible is a separate question, phased out by income only if you or a spouse are covered by a workplace plan. Losing the deduction does not stop you contributing — it makes the contribution non-deductible, which must be recorded on Form 8606 so the basis is not taxed again on withdrawal. Withdrawals before 59½ generally cost income tax plus a 10% penalty, with exceptions for a first home, education and certain hardships. RMDs begin at 73, or 75 for those born in 1960 or later.
Put it to work
Traditional IRA Calculator
Project your traditional IRA at retirement, see this year's tax deduction, and estimate the tax you'll owe on withdrawals. Uses the 2026 limit of $7,500.
Roth IRA Calculator
Project your Roth IRA's tax-free value at retirement and see how much of it is earnings you'll never pay tax on. Uses the 2026 limit of $7,500.
Retirement Calculator
Project your retirement savings: what your balance could reach by retirement age and the monthly income it could sustainably provide.