Traditional IRA Calculator
A Traditional IRA offers an upfront tax deduction for contributions, if you qualify, so you lower your tax bill now and your money grows tax-deferred until you withdraw it in retirement, when it's taxed as ordinary income. This calculator projects your balance over time and estimates the tax deduction you capture this year based on your income and filing status, so you can see both the long-term growth and the immediate tax benefit. Enter your current balance, planned annual contribution, expected return, years to withdrawal, and your current taxable income and filing status, and the calculator returns your projected balance, the tax deduction value, and an estimate of the tax you'd owe at withdrawal. Traditional IRAs are best if you expect to be in a lower tax bracket in retirement than you are now, because you capture the deduction at your current (higher) rate and pay tax on withdrawals at your future (lower) rate. The deductibility of contributions depends on whether you or your spouse are covered by a workplace retirement plan: if neither is covered, contributions are fully deductible regardless of income; if you are covered, deductibility phases out at higher incomes. Required Minimum Distributions begin at age 73, forcing you to start withdrawing and paying tax on the balance whether you need the money or not, which is a key difference from a Roth IRA (which has no RMDs during the owner's lifetime). The 2026 contribution limit is $7,000, or $8,000 if you're 50 or older, the same as a Roth. Use this calculator to compare Traditional against Roth, to see the value of the upfront deduction, and to plan for the tax you'll owe at withdrawal, which is often a surprise to savers who forget that tax-deferred is not tax-free.
Traditional IRA Calculator
Project your Traditional IRA balance and the upfront tax deduction you capture.
Projected balance
$578,429
Taxed on withdrawal
Tax deduction this year
$1,540
Upfront tax savings
Estimated tax at withdrawal
$127,254
At 22% bracket
Traditional IRA contributions may be tax-deductible now, lowering your current tax bill, but withdrawals in retirement are taxed as ordinary income. Best if you expect a lower tax bracket in retirement.
How to Use This Calculator
- 1Enter your current Traditional IRA balance.
- 2Enter your planned annual contribution.
- 3Enter your expected annual return.
- 4Enter the years until withdrawal.
- 5Enter your current taxable income and filing status.
Why It Helps
- ✓Shows the upfront tax deduction value.
- ✓Projects tax-deferred growth over time.
- ✓Estimates tax owed at withdrawal.
- ✓Helps compare Traditional vs. Roth.
About This Calculator
A Traditional IRA offers an upfront tax deduction for contributions, if you qualify, so you lower your tax bill now and your money grows tax-deferred until you withdraw it in retirement, when it's taxed as ordinary income. This calculator projects your balance over time and estimates the tax deduction you capture this year based on your income and filing status, so you can see both the long-term growth and the immediate tax benefit. Enter your current balance, planned annual contribution, expected return, years to withdrawal, and your current taxable income and filing status, and the calculator returns your projected balance, the tax deduction value, and an estimate of the tax you'd owe at withdrawal. Traditional IRAs are best if you expect to be in a lower tax bracket in retirement than you are now, because you capture the deduction at your current (higher) rate and pay tax on withdrawals at your future (lower) rate. The deductibility of contributions depends on whether you or your spouse are covered by a workplace retirement plan: if neither is covered, contributions are fully deductible regardless of income; if you are covered, deductibility phases out at higher incomes. Required Minimum Distributions begin at age 73, forcing you to start withdrawing and paying tax on the balance whether you need the money or not, which is a key difference from a Roth IRA (which has no RMDs during the owner's lifetime). The 2026 contribution limit is $7,000, or $8,000 if you're 50 or older, the same as a Roth. Use this calculator to compare Traditional against Roth, to see the value of the upfront deduction, and to plan for the tax you'll owe at withdrawal, which is often a surprise to savers who forget that tax-deferred is not tax-free.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation.
Frequently Asked Questions
Is my Traditional IRA contribution deductible?
If you (and your spouse) don't have a workplace retirement plan, yes, fully. If you do, deductibility phases out at higher incomes.
How are Traditional IRA withdrawals taxed?
Withdrawals in retirement are taxed as ordinary income. Required Minimum Distributions begin at age 73.
What is the 2026 contribution limit?
$7,000, or $8,000 if you are 50 or older — the same as a Roth IRA.
When must I start withdrawing?
Required Minimum Distributions (RMDs) start at age 73. Failing to take them triggers steep penalties.
Traditional or Roth — which should I pick?
Choose Traditional if you expect a lower retirement tax bracket (for the deduction now). Choose Roth if you expect a higher bracket (for tax-free withdrawals later).
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Written by
James MitchellSenior Financial Analyst & Personal Finance Expert
Certified Financial Planner (CFP) • MBA in Finance, University of Chicago Booth School of Business