Traditional IRA Calculator

A Traditional IRA lets you deduct the contribution today (if you qualify) and pay tax on every dollar withdrawn in retirement. It is a bet that your retirement tax rate will be lower than your working rate. For most middle-income households — people in the 22% or 24% brackets who expect to be in 12% or 22% in retirement — that bet pays off. For high earners already at 32%+ today, it usually does not, and they should lean Roth.

The 2026 deduction phaseouts for a Traditional IRA when covered by a workplace plan: single $79,000–$89,000 MAGI, married filing jointly $126,000–$146,000. Above that, you can still contribute — but you get no deduction. At that point the math is weaker than a Roth, and most planners redirect the contribution through a backdoor Roth instead.

Starting balance $40,000. Annual contribution $7,000. Return 7%. Years 25. The $40,000 compounds to $217,000. The $7,000 stream compounds to $443,000. Pre-tax retirement balance: $660,000. Apply a 22% retirement tax rate and after-tax value is $515,000.

Each year of contribution also delivered an immediate tax saving. At a 24% marginal rate, $7,000 deducted = $1,680 kept in your pocket today. Over 25 years that is $42,000 of deferred tax. If you reinvested that annual tax saving in a brokerage account at 7%, it would have grown to another $100,000+ — the reason some planners say "Traditional IRA + invest the tax savings" matches a Roth. That only works if you actually invest the savings. Most people do not.

Three clear-cut situations: (1) You are currently in the 32%, 35%, or 37% bracket and plan to retire in the 22–24% bracket. Every dollar deducted at 35% comes out at 22% — you keep the 13-point spread. (2) You are not covered by a workplace plan; the deduction is unrestricted no matter your income. (3) You plan to do Roth conversions during the "gap years" between retirement and age 73 — the Traditional gives you Roth-convertible inventory at retirement-era bracket rates. The IRA Rollover & Roth Conversion Calculator maps this out.

Traditional IRAs are subject to Required Minimum Distributions starting at age 73 (age 75 for those born in 1960+). The distribution is based on IRS Uniform Lifetime Table factors — 26.5 at 73, falling to 12.2 at 90. A $1,000,000 Traditional IRA starts with a $37,700 forced withdrawal. That withdrawal is fully taxable and can push you into IRMAA surcharges on Medicare. Plan Roth conversions between retirement and 73 to shrink the tax-deferred balance before RMDs turn it into a bracket bomb. The RMD Calculator shows the exact numbers.

Three mistakes wreck most Traditional IRA plans. One: planning on 10% returns. The S&P 500 averaged ~10% nominal since 1928, but inflation and 0.5% fund fees bring that to roughly 5.5–6% real. Run the 10% number and you will be underfunded by 20–30% in any realistic outcome. Two: ignoring taxes on the way out. A $1,000,000 pre-tax 401(k) is $750,000–$800,000 spendable for most households once federal and state tax come out. Three: treating Social Security as fixed. Claiming at 62 pays 70% of your primary insurance amount; waiting to 70 pays 124%. On a $2,400 PIA that is $1,680 vs $2,976 a month — a $15,552-per-year, lifelong spread.

Traditional-specific: contributing while the deduction is phased out. If you are over the income limit and covered by a 401(k), your deduction is zero — but the contribution still has to be tracked as basis for the rest of your life. Either deduct or backdoor Roth; avoid non-deductible Traditional stranded forever.

Use this calculator to get a directional answer in five minutes. Hire a fee-only fiduciary CFP (search NAPFA, XY Planning Network, or Garrett) when the Traditional IRA decision involves any of these: portfolio over $750,000, a defined-benefit pension with a lump-sum option, rental property, concentrated stock (ISOs, RSUs, founder shares), a blended family, special-needs planning, or a move across a state line. A $3,000 one-time plan typically recovers its cost many times over in avoided tax and claim-timing mistakes.

For a simpler situation — single account, single state, standard Social Security — this tool plus an annual self-review is fine. Re-run every October so you still have time to act on the year.

This is not financial, tax, investment, or legal advice. Calculations are educational and rely on the inputs you provide. Tax brackets, contribution limits, Social Security PIA bend points, RMD factors, and Medicare IRMAA thresholds change — verify against the official IRS, SSA, and CMS tables before acting on any number. Past investment returns do not predict future results. For a legally binding plan, engage a licensed fiduciary, CPA, or estate attorney.

This tool runs entirely in your browser — nothing you type is logged, stored, or sent to a server. Use Export PDF to save a clean copy of your inputs and results for a spouse, advisor, or your own records. Missing a Traditional IRA scenario you need? Email us at hello@retirementhub.dev and we will add it.