Traditional IRA Calculator
Project your Traditional IRA growth and estimate your after-tax balance at retirement accounting for withdrawal taxes.
Pre-Tax Balance at Retirement
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After-Tax Balance
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Total Contributed
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What is Traditional IRA Calculator?
A Traditional IRA calculator projects the pre-tax growth of your retirement account and estimates the after-tax balance you'll actually have available in retirement. Contributions may be tax-deductible now, but all withdrawals — contributions and earnings alike — are taxed as ordinary income. This calculator helps you understand both the gross balance and the net amount after estimated taxes.
How to use
- 1 Enter your current age and planned retirement age.
- 2 Enter your annual contribution amount.
- 3 Enter the expected annual return rate.
- 4 Enter your estimated tax rate at withdrawal (your expected retirement tax bracket).
- 5 Review the pre-tax balance, after-tax balance, and total contributions.
Formula
Example calculation
Age 35, retire at 65, $6,000/year, 7% return, 22% withdrawal tax: Pre-tax balance ≈ $566,765. After-tax balance ≈ $442,077. Total contributed: $180,000.
Frequently asked questions
Are Traditional IRA contributions tax-deductible?
Contributions are fully deductible if you (and your spouse) don't have a workplace retirement plan, or if your income is below certain thresholds. Deductibility phases out at higher incomes for those with workplace plans.
When must I start taking withdrawals?
Required Minimum Distributions (RMDs) must begin at age 73 (as of 2023 SECURE 2.0 rules). Failure to take RMDs results in a 25% excise tax on the amount not withdrawn.
What is the penalty for early withdrawal?
Withdrawals before age 59½ are subject to a 10% early withdrawal penalty plus ordinary income tax, with some exceptions (first-time home purchase, disability, substantially equal periodic payments, etc.).
Roth vs Traditional IRA — which is better?
If you expect lower taxes in retirement than now, Traditional IRA gives you a bigger deduction when it matters most. If you expect higher taxes in retirement, Roth wins. Many financial planners recommend diversifying across both.
What is the 2024 contribution limit?
For 2024, the limit is $7,000 per year ($8,000 if age 50+). This limit is shared across all your IRAs — you can't contribute $7,000 to a Roth and another $7,000 to a Traditional in the same year.