Traditional IRA Calculator
Calculate your traditional IRA growth and tax savings with our free traditional IRA calculator. This traditional IRA calculator includes retirement projections, required minimum distributions (RMDs), and tax deduction estimates. Use this traditional IRA calculator to compare Traditional IRA vs Roth IRA outcomes and optimize your retirement strategy.
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Calculator Inputs
2025 limit: $0
Traditional IRA Balance at Retirement
$0
After-Tax Value: $0
Tax Benefits
Traditional vs Roth Comparison
Understanding Your Traditional IRA Calculator Results
A traditional IRA calculator helps you plan for retirement by projecting the growth of your tax-deferred retirement savings. Unlike a Roth IRA where you pay taxes upfront, a traditional IRA gives you a tax deduction now and defers taxes until retirement. This traditional IRA calculator shows you the power of tax-deferred growth and helps you compare traditional vs Roth IRA strategies based on your current and expected future tax rates.
Key Traditional IRA Concepts:
- •Tax Deduction: Traditional IRA contributions may be tax-deductible, reducing your taxable income for the current year. Deductibility depends on your income and whether you're covered by a workplace retirement plan.
- •Tax-Deferred Growth: Your investments grow tax-free until withdrawal. You don't pay taxes on gains, dividends, or interest while the money stays in the account.
- •Required Minimum Distributions (RMDs): Starting at age 73, you must withdraw a minimum amount each year based on IRS life expectancy tables. This traditional IRA calculator includes RMD projections.
- •Contribution Limits: For 2025, you can contribute up to $7,000 annually, or $8,000 if you're 50 or older (catch-up contribution).
- •Taxation at Withdrawal: Withdrawals in retirement are taxed as ordinary income at your then-current tax rate. This is why comparing your current vs future tax rate is crucial.
Using This Traditional IRA Calculator:
- •Enter your current age and planned retirement age to see long-term projections
- •Input your MAGI (Modified Adjusted Gross Income) to check deductibility eligibility
- •Compare your current tax rate vs expected retirement tax rate to determine if Traditional or Roth IRA is better
- •Review RMD projections starting at age 73 to plan for required withdrawals
- •Use the after-tax comparison to see which account type leaves you with more money in retirement
This traditional IRA calculator is for educational purposes only and does not constitute financial advice. Consult with a qualified financial advisor or tax professional to determine the best retirement strategy for your specific situation.
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Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.