Finance

Traditional IRA Calculator — Retirement Savings Growth

Project your Traditional IRA growth and estimate your after-tax balance at retirement accounting for withdrawal taxes.

How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🌱 When you save money in a bank, the bank gives you a small gift (called interest) for keeping it there. Then next year, you get a gift on your gift too! This tool shows how much your money will grow over time.

📌 Direct Answer & Summary

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.

What is Traditional IRA Calculator — Retirement Savings Growth?

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 it

  1. 1️⃣ Enter your current age and planned retirement age.
  2. 2️⃣ Enter your annual contribution amount.
  3. 3️⃣ Enter the expected annual return rate.
  4. 4️⃣ Enter your estimated tax rate at withdrawal (your expected retirement tax bracket).
  5. 5️⃣ Review the pre-tax balance, after-tax balance, and total contributions.

Formula

Pre-tax FV = PMT × [(1 + r)^n − 1] / r. After-tax balance = Pre-tax FV × (1 − tax rate). Total contributed = PMT × n.

💡 See it in action — a real example

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.

❓ Common 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 2026 contribution limit?
For 2026, the limit is $7,500 per year ($8,600 if age 50+). This limit is shared across all your IRAs — you can't contribute $7,500 to a Roth and another $7,500 to a Traditional in the same year.
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