Traditional IRA Calculator
A Traditional IRA offers a trade most people never actually run the numbers on: a real deduction today in exchange for ordinary income tax on withdrawals decades from now. This calculator estimates both halves of that trade — this year's tax savings and your long-term projected balance — so the decision is based on your actual numbers, not a guess.
Enter your details to see your projected balance.
How to use this calculator
- Enter your current age, retirement age, and current Traditional IRA balance.
- Enter your planned annual contribution and filing status.
- Click "Project my Traditional IRA" to see both this year's estimated tax savings and your projected balance.
How the calculation works
Your contribution is capped at the 2026 IRS limit ($7,500, or $8,600 if 50+), then multiplied by your marginal federal tax rate to estimate this year's tax savings — since a Traditional IRA deduction reduces your taxable income dollar for dollar, at whatever bracket that income would otherwise have been taxed. Separately, the same contribution is grown forward using compound monthly returns to project your balance at retirement, the same growth math used across every account-based calculator on this site. Unlike a Roth, that projected balance will still owe ordinary income tax when withdrawn — this calculator shows the pre-tax figure.
A worked example
Say you're in the 22% marginal bracket and contribute the full $7,500 limit this year. That deduction saves you roughly $1,650 on this year's tax bill immediately — money you keep now, not decades from now. Meanwhile, if that same $7,500 a year grows at 7% from age 35 to 65, the projected pre-tax balance lands north of $700,000. The catch is that number is pre-tax: withdrawals in retirement are taxed as ordinary income, which is exactly why comparing this to a Roth projection matters before deciding which account to prioritize.
Frequently asked questions
Is my Traditional IRA contribution always deductible?
Not always — if you (or your spouse) are covered by a workplace retirement plan, the deduction phases out at higher incomes. This calculator assumes a full deduction; check IRS rules for your exact situation.
Traditional or Roth — which is better?
It depends on whether you expect your tax rate to be higher now or in retirement. Traditional suits people expecting a lower rate later; Roth suits people expecting a higher rate later.
Does this share a limit with my Roth IRA?
Yes — the $7,500 (or $8,600 for 50+) 2026 limit applies to your combined Traditional and Roth IRA contributions, not each separately.
What if I'm not covered by a workplace retirement plan?
If neither you nor your spouse is covered by an employer plan, your Traditional IRA contribution is fully deductible regardless of income.
What happens if I contribute but can't deduct it?
You can still make a "nondeductible" contribution up to the limit — it grows tax-deferred, and you track the after-tax portion on IRS Form 8606 so you're not taxed twice on that part when you withdraw it.
Are Traditional IRA withdrawals ever penalized?
Withdrawals before age 59½ generally trigger a 10% early withdrawal penalty on top of ordinary income tax, with some exceptions — this calculator does not model early withdrawal scenarios.