IRA Calculator

Calculate IRA growth and compare traditional vs Roth IRA outcomes.

Personal Information

Contribution Details

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Financial Assumptions

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%
%

IRA Balance at Retirement

$1,710,517

In 35 years

Today's Dollar Value

$720,762

Adjusted for inflation

After-Tax Value

$1,334,203

After taxes

IRA Strategy Tips

Maximizing Growth:

  • • Contribute early in the year for more growth
  • • Increase contributions with raises
  • • Consider automatic contributions
  • • Don't forget catch-up contributions at 50

Choosing IRA Type:

  • • Traditional if expecting lower retirement tax rate
  • • Roth if expecting higher retirement tax rate
  • • Consider Roth conversions in low-income years
  • • Both types can be part of tax diversification

How it works

A traditional IRA calculator projects retirement savings that grow tax-deferred. Contributions may be tax-deductible now, the balance compounds without yearly tax, and you pay income tax on withdrawals in retirement — ideal if you expect a lower tax rate later.

Tax-deferred growth

FV = PV(1 + r)ⁿ + PMT · [(1 + r)ⁿ − 1] / r
PMT
annual contribution (2026 limit $7,500; $8,600 if 50+)
r
expected return
n
years to retirement

Worked example

  • Contribute $7,500/year at 7%
  • Over 30 years
  1. FV = 7,500 × [(1.07³⁰ − 1) / 0.07]

≈ $708,000 — all compounding untaxed until withdrawal.

Good to know

  • Contributions may be deductible depending on income and workplace-plan coverage.
  • Withdrawals before age 59½ usually face income tax plus a 10% penalty.
  • Required minimum distributions (RMDs) begin at age 73 for traditional IRAs.

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Frequently Asked Questions

How much can I contribute to an IRA?

For 2026, the IRA contribution limit is $7,500 across all your traditional and Roth IRAs combined, with an additional catch-up contribution allowed if you're 50 or older. You also need earned income at least equal to what you contribute.

What's the difference between a traditional and Roth IRA?

Traditional IRA contributions may be tax-deductible now, with withdrawals taxed as ordinary income in retirement. Roth contributions are made after tax, but qualified withdrawals — including all growth — are tax-free. Roth tends to win if you expect a higher tax rate in retirement; traditional if lower.

When can I withdraw from an IRA without penalty?

Generally at age 59½. Earlier withdrawals of earnings typically incur a 10% penalty plus tax, with exceptions for things like a first home purchase (up to $10,000), qualified education costs, and disability. Roth contributions (not earnings) can be withdrawn anytime tax- and penalty-free.

Do IRAs have required minimum distributions (RMDs)?

Traditional IRAs require RMDs starting at age 73 under current law (rising to 75 in 2033). Roth IRAs have no RMDs during the original owner's lifetime, which makes them useful for letting money compound untouched or passing assets to heirs.

Are there income limits on IRA contributions?

Roth IRA contributions phase out above certain income levels, and traditional IRA deductibility phases out if you (or your spouse) are covered by a workplace plan. The limits adjust annually — high earners often use the "backdoor Roth" route of contributing to a non-deductible traditional IRA and converting.