Traditional IRA Calculator 2026
Traditional IRA Calculator
Your Information
Deduction Eligibility
Tax Rates
Your Traditional IRA Projection
Roth wins because retirement tax rate (22%) ≥ current rate (22%) — but Traditional banked $990/yr in tax savings today.
| Year | Age | Pre-Tax Balance |
|---|---|---|
| 2031 | 35 | $64,169 |
| 2036 | 40 | $133,131 |
| 2041 | 45 | $229,853 |
| 2046 | 50 | $365,511 |
| 2051 | 55 | $555,779 |
| 2056 | 60 | $822,640 |
| 2061 | 65 | $1,196,925 |
Based on your results — what to do next:
Compare against a Roth IRA side by side
Your Traditional IRA nets $956,702 after tax. Run the same numbers through a Roth IRA to see which account wins for your tax situation.
Plan for Required Minimum Distributions
Traditional IRAs force withdrawals starting at age 73. See what your RMDs look like on a projected balance of $1,196,925.
Is your total retirement on track?
$3,189/mo from this IRA alone — check it against your full retirement plan across all accounts.
A Traditional IRA is a tax-advantaged retirement account funded with pre-tax (or partially pre-tax) dollars — contributions may be tax-deductible today, and the balance grows tax-deferred until you withdraw it in retirement, when it's taxed as ordinary income. This calculator projects your balance using 2026 contribution limits ($7,500/$8,600 age 50+), applies the IRS deduction phase-out rules for workplace-plan coverage, and compares your after-tax outcome against an equivalent Roth IRA.
How Traditional IRA Growth Is Calculated
Every contribution — deductible or not — grows tax-deferred using standard compound interest. The deductible share of each contribution reduces your taxable income the year you make it. At withdrawal, the IRS pro-rata rule taxes the portion of your balance attributable to deductible contributions and all investment growth, while any non-deductible basis comes out tax-free.
| Variable | Definition |
|---|---|
| r | Annual return rate (historical S&P 500 average: 10%; conservative estimate: 6–7%) |
| Contribution Limit | $7,500 (under 50) or $8,600 (50+) in 2026 — shared across all Traditional + Roth IRAs |
| Deduction Phase-Out | Applies only if covered by a workplace plan: single $81k–$91k MAGI; MFJ (covered) $129k–$149k; MFJ (spouse covered) $242k–$252k |
| 4% Rule | Monthly income = After-Tax Balance × 4% ÷ 12 — the standard safe withdrawal rate in retirement |
Example: A 30-year-old with no workplace retirement plan (fully deductible regardless of income) contributes $7,500/year to a Traditional IRA starting with a $15,000 balance, at 7% annual return for 35 years. The pre-tax balance reaches about $1,197,000. Taxed at a 22% rate in retirement, the after-tax spendable value is roughly $934,000 — about $263,000 less than an equivalent Roth IRA — but the Traditional IRA also generated a real tax deduction every single year along the way that the Roth did not.
💡 Expert Pro-Tip
Track your basis on Form 8606 every year you make a non-deductible contribution. If your income is too high to deduct a contribution but you make it anyway, that money becomes "basis" that should never be taxed twice. Without a paper trail, the IRS has no way to know which dollars you already paid tax on — and many people simply pay tax again on the same money at withdrawal because they lost track. If you routinely hit the deduction phase-out, also consider whether a Backdoor Roth IRA conversion makes more sense than parking non-deductible dollars in a Traditional IRA for decades.
Traditional IRA FAQ — 2026
What is the 2026 Traditional IRA contribution limit?
The 2026 Traditional IRA contribution limit is $7,500 per year, or $8,600 if you are 50 or older (a $1,100 catch-up contribution). This limit is shared across all your IRAs combined (Traditional + Roth) — you cannot contribute $7,500 to each. Unlike a Roth IRA, there is no income limit on who can contribute to a Traditional IRA; the income limits only affect whether your contribution is tax-deductible.
Is my Traditional IRA contribution tax-deductible?
It depends on whether you (or your spouse) are covered by a workplace retirement plan. If neither of you is covered, your contribution is 100% deductible regardless of income. If you are covered, the deduction phases out between $81,000–$91,000 MAGI (single) or $129,000–$149,000 (married filing jointly). If you are not covered but your spouse is, the phase-out is $242,000–$252,000. Above the top of each range, contributions are still allowed but are non-deductible — tracked as basis on IRS Form 8606.
Traditional IRA vs. Roth IRA — which is better?
Traditional IRA wins when your tax rate in retirement will be lower than it is today — the deduction is worth more now than the tax you would have saved later. Roth IRA wins when your retirement tax rate will be the same or higher, since qualified Roth withdrawals are entirely tax-free. A common strategy: use Traditional IRA deductions during your peak-earning years, and Roth contributions (or Roth conversions) during lower-income years.
What happens when I withdraw non-deductible contributions?
Non-deductible contributions create "basis" that comes out tax-free, but the IRS pro-rata rule means you cannot choose to withdraw only your basis — every distribution is a proportional mix of taxable (deductible contributions + growth) and non-taxable (basis) dollars, based on the ratio across all your Traditional IRA accounts combined. Track your basis every year on Form 8606 so you (and the IRS) know what you already paid tax on.
When do Required Minimum Distributions (RMDs) start?
Under SECURE 2.0, RMDs from a Traditional IRA currently begin at age 73 (rising to 75 starting in 2033). The IRS calculates your annual RMD by dividing your prior year-end balance by a life-expectancy factor from the IRS Uniform Lifetime Table. Missing an RMD triggers a 25% excise tax on the shortfall (reduced to 10% if corrected within two years). Roth IRAs have no RMDs during the original owner's lifetime.