Traditional IRA Calculator
Estimate tax-deferred growth, tax savings now, and net benefit versus a taxable account.
Traditional IRA Analysis
What is a Traditional IRA Calculator?
A traditional IRA calculator projects the growth of your tax-deferred retirement account. It shows how much you can accumulate, the tax savings from deductions, and the estimated taxes due upon withdrawal.
It also compares the traditional IRA to a taxable investment account to illustrate the power of tax-deferred compounding over time.
How to Use
- Enter your current age, retirement age, and existing IRA balance.
- Input your planned annual contribution and expected rate of return.
- Provide your current tax rate and estimated retirement tax rate.
- Click Calculate to see projected balance, tax savings, and net benefit.
Frequently Asked Questions
How does a traditional IRA save taxes?
Contributions are typically tax-deductible, reducing your taxable income in the year you contribute. Growth is tax-deferred until withdrawal.
Are withdrawals taxed?
Yes, withdrawals from a traditional IRA are taxed as ordinary income. This calculator estimates the tax based on your projected retirement tax rate.
What is the net benefit versus a taxable account?
The net benefit compares the after-tax value of a traditional IRA to a taxable account where gains are taxed annually. Tax deferral usually leads to higher net wealth.
Should I choose a traditional IRA or Roth IRA?
If you expect to be in a lower tax bracket in retirement, a traditional IRA may save more taxes. If you expect a higher bracket, a Roth IRA may be better.