Introduction
A Traditional IRA is a retirement account that can lower your taxes today. When you put money in, you may be able to deduct it from your income. Your money then grows tax-free until you take it out. You pay taxes later, when you retire.
This Traditional IRA calculator shows you two things. First, how much you may save on taxes this year. Second, how big your account could grow by the time you retire.
Just enter your age, when you want to retire, your filing status, and your income (MAGI). Then add how much you plan to save each year, your expected rate of return, and your tax rate now and later.
The tool tells you if your contribution is fully deductible, partly deductible, or not deductible at all. This depends on your income and whether you have a retirement plan at work, like a 401(k). You also get a year-by-year chart and table, plus a step-by-step look at the math.
Use it to plan your IRA contributions and see how much compounding can add to your savings over time.
How to use our Traditional IRA Calculator
Enter your age, tax details, and savings plan. The Traditional IRA calculator shows if your contribution is tax deductible, how much tax you save this year, your projected IRA balance at retirement, and what it may be worth after taxes.
Current Age: Type your age today in whole years. This sets how long your money can grow and if you can add the age 50+ catch-up amount.
Target Retirement Age: Type the age you plan to stop saving and start taking money out. It must be higher than your current age. If you are still deciding, the retirement age calculator and when can I retire calculator can help.
Filing Status: Pick the status you use on your tax return: Single, Married Filing Jointly, Married Filing Separately, or Head of Household. This sets your IRA deduction income limits and your tax bracket.
Covered by a Workplace Retirement Plan: Choose "Yes" if you or your spouse pays into a plan at work, like a 401(k), 403(b), or pension. Choose "No" if neither of you does.
Who Is Covered by the Plan: This shows only for joint filers who answered "Yes." Pick if you (or both of you) are covered, or if only your spouse is covered. Spouse-only coverage uses a much higher income limit.
Modified Adjusted Gross Income (MAGI): Enter your yearly income in dollars. It is close to the AGI on your tax return. The tool compares it to the IRS phase-out range to find your deduction.
Annual IRA Contribution: Enter how much you plan to put in your IRA each year. The tool shows your 2026 IRS limit and warns you if you go over it.
Expected Annual Rate of Return: Type or drag the slider to set your average yearly growth rate, from 1% to 15%. A rate near 6% to 8% is a common choice, close to long-run S&P 500 results.
Current Marginal Tax Rate: Pick the federal tax bracket you are in now. This sets how much tax you save this year from a deductible contribution. Not sure? Check the effective tax rate calculator.
Expected Tax Rate at Retirement: Pick the tax bracket you think you will be in when you withdraw. IRA withdrawals count as regular income, so this changes your after-tax value.
Click Calculate to see your results, chart, step-by-step math, and year-by-year table. Click Reset to Defaults to start over.
What Is a Traditional IRA?
A Traditional IRA is a retirement account you open on your own. You put money in, and that money can grow for years without being taxed each year. In many cases you can also deduct your contribution on your tax return, which lowers your tax bill today. You pay income tax later, when you take the money out in retirement. For a broader view of all account types, try the general IRA calculator.
How a Traditional IRA Saves You Money
- Tax break now: If your contribution is deductible, it cuts your taxable income for the year. A $7,500 deduction in the 22% bracket saves about $1,650 in tax.
- Tax-deferred growth: You owe no tax on dividends, interest, or gains while the money stays in the account. That lets your balance grow faster over time.
- Tax later: Withdrawals count as regular income. If your tax rate is lower in retirement, you keep more of your money. See the income tax calculator to test different rates.
2026 Contribution Limits
- Under age 50: $7,500 per year.
- Age 50 and older: $8,600 per year, which includes the catch-up amount.
- You cannot put in more than you earned from work during the year. Check your gross pay with the annual income calculator.
- The limit is shared across all your IRAs, including Roth IRAs.
Who Can Deduct a Traditional IRA Contribution?
If neither you nor your spouse has a retirement plan at work, your full contribution is deductible no matter how much you earn. If you do have a workplace plan like a 401(k), the IRS looks at your Modified Adjusted Gross Income (MAGI). Below the range, you get the full deduction. Inside the range, you get part of it. Above the range, you get none.
2026 MAGI Phase-Out Ranges
| Your Situation | Phase-Out Range |
|---|---|
| Single or Head of Household (covered at work) | $81,000 – $91,000 |
| Married Filing Jointly (you are covered) | $129,000 – $149,000 |
| Married Filing Jointly (only your spouse is covered) | $242,000 – $252,000 |
| Married Filing Separately (covered at work) | $0 – $10,000 |
Non-Deductible Contributions
You can still add money to a Traditional IRA even if you cannot deduct it. That money is called your "basis." You already paid tax on it, so you do not pay tax on it again when you withdraw. Report it to the IRS on Form 8606 so you keep proof of your basis. Some savers later move this money to a Roth account — the Roth conversion calculator shows the tax cost of that step.
Rules for Taking Money Out
- Age 59½: Withdrawals before this age usually face a 10% penalty plus regular income tax. Some cases, like a first home or big medical bills, are exempt. Model the cost with the IRA distribution calculator.
- Age 73: You must start Required Minimum Distributions each year, whether you need the money or not. Use the IRA RMD calculator to size your yearly amount, or the inherited IRA RMD calculator if you received the account from someone else.
- No tax-free withdrawals: Unlike a Roth IRA, every deductible dollar and all earnings are taxed as income when withdrawn. Plan your drawdown with the retirement withdrawal calculator or the how long will my money last calculator.
Traditional IRA vs. Roth IRA
A Traditional IRA gives you the tax break today and taxes you later. A Roth IRA gives you no break today but lets you take money out tax-free in retirement. Pick a Traditional IRA if you think your tax rate will be lower when you retire. Pick a Roth if you think it will be higher. To see the full picture across every account you own, run the retirement calculator, and check your target nest egg with the how much do I need to retire calculator or the 4% rule calculator.
This tool gives estimates for learning only. Investment returns are not guaranteed, and tax rules can change. Talk to a tax or financial professional about your own situation.