What this calculator shows you
- Tax Deduction
- See your annual tax savings from contributions
- Growth Projection
- Project your IRA balance at retirement
- Tax Comparison
- Compare tax savings now vs taxes later
- Retirement Income
- Estimate your retirement income stream
How Traditional IRAs Work
Traditional IRA contributions are often tax-deductible, reducing your taxable income in the year you contribute. Your investments grow tax-deferred until retirement. When you withdraw, you pay ordinary income tax on the full amount.
2026 Contribution Limits
The 2026 contribution limit is $7,500 ($8,600 if 50+). Deductibility phases out at higher incomes if you have a workplace retirement plan. If neither you nor your spouse has a workplace plan, contributions are fully deductible regardless of income.
Traditional IRA vs Roth IRA
Traditional IRAs give you a tax break now; Roth IRAs give you tax-free withdrawals later. Choose Traditional if you expect a lower tax rate in retirement. Choose Roth if you expect higher taxes later or want tax-free flexibility.
Required Minimum Distributions
Unlike Roth IRAs, Traditional IRAs require you to start taking RMDs at age 73. The amount is based on your account balance and life expectancy. Failure to take RMDs results in a 25% penalty on the amount not withdrawn.
Questions people ask
Can I contribute to both a Traditional and Roth IRA?
Yes, but the combined contribution can't exceed the annual limit ($7,500, or $8,600 if 50+, for 2026). You can split contributions however you like between the two account types.
When should I choose a Traditional IRA over a Roth?
Choose Traditional if: you're in a high tax bracket now, expect lower taxes in retirement, need the current tax deduction, or don't qualify for Roth due to income limits.
Can I convert my Traditional IRA to a Roth?
Yes, you can convert anytime. You'll pay taxes on the converted amount in the year of conversion. This can be a good strategy if you expect higher taxes later or want tax-free withdrawals in retirement.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.