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IRA Calculator
See how a Traditional IRA grows tax-deferred and compare it to a Roth IRA based on your income, contributions, and tax situation. We're building this calculator now — check back soon.
See how a Traditional IRA grows tax-deferred and compare it to a Roth IRA based on your income, contributions, and tax situation. We're building this calculator now — check back soon.
This IRA calculator projects the future value of your Individual Retirement Account based on current balance, annual contributions, investment return assumptions, and years to retirement. It models both Traditional and Roth IRAs — showing after-tax balances at retirement so you can make a true comparison between the two account types based on your current and expected future tax rates.
IRA growth follows compound growth applied to annual contributions:
FV = Current Balance × (1+r)ⁿ + Annual Contribution × [((1+r)ⁿ − 1) / r] × (1+r)
For Traditional IRAs, the after-tax withdrawal value applies your expected retirement tax rate to the full balance. For Roth IRAs, the full projected balance is available tax-free in retirement.
The 2024 limit is $7,000 per person ($8,000 if age 50 or older). This limit applies to the combined total of all your Traditional and Roth IRAs — you can split contributions between accounts but cannot exceed the total limit per person.
Traditional IRA contributions may be tax-deductible (reducing taxable income today), growing tax-deferred. Withdrawals in retirement are taxed as ordinary income. Roth contributions are after-tax (no current deduction), but all qualified withdrawals in retirement — including all growth — are completely tax-free. If you expect a higher tax bracket in retirement, Roth typically wins.
For 2024, Roth contributions phase out between $146,000–$161,000 MAGI for single filers and $230,000–$240,000 for married filing jointly. Above those thresholds, the "backdoor Roth" — a non-deductible Traditional IRA contribution followed by a Roth conversion — is available at any income level.
Yes. IRA contributions are independent of 401(k) contributions. You can max out both ($23,000 in 401k + $7,000 in IRA = $30,000 in 2024). However, if you're covered by a workplace retirement plan, your Traditional IRA contribution may not be deductible depending on your MAGI.
Excess IRA contributions are subject to a 6% excise tax per year the excess remains in the account. Withdraw the excess plus earnings before your tax filing deadline to avoid the penalty. If discovered after the deadline, apply it to the next year's limit or withdraw it and pay the 6% penalty.
Penalty-free distributions from Traditional IRAs start at age 59½. Before that, a 10% early withdrawal penalty applies plus ordinary income tax on the full distribution. Several exceptions exist: first-time home purchase (up to $10,000 lifetime), higher education expenses, disability, and substantially equal periodic payments (SEPP/72t).
A spousal IRA allows a non-working or lower-earning spouse to contribute based on the working spouse's earned income. Both spouses can contribute up to $7,000 each (2024) as long as combined earned income equals or exceeds combined contributions — doubling the couple's annual tax-advantaged savings capacity.
Compare IRA growth to your workplace plan with the 401(k) Calculator. The Roth IRA Calculator specifically models tax-free growth projections. The RMD Calculator helps calculate required minimum distributions from Traditional IRAs in retirement.