Free Traditional IRA Calculator

Project the growth of your Traditional IRA with tax-deductible contributions and tax-deferred compounding.

USD
USD
%
years
%

Projected IRA Value

$608,228

Total Contributions$200,000
Total Tax Savings (Deductions)$42,000
Investment Growth$408,228

Projected IRA Value vs Years Until Retirement

Traditional IRA Overview

A Traditional IRA offers tax-deductible contributions that grow tax-deferred until withdrawal in retirement.

Key Features

  • Contribution limit: $7,000/year ($8,000 if age 50+) for 2024
  • Tax deduction: Contributions may be fully or partially deductible depending on income and employer plan
  • Tax-deferred growth: No taxes on gains until withdrawal
  • Taxed at withdrawal: Distributions are taxed as ordinary income
  • Required Minimum Distributions: Must begin at age 73
  • Best For

    People who expect to be in a LOWER tax bracket in retirement than they are now.

    Example Calculation

    $25,000 current balance, $7,000 annual contribution, 7% return, 25 years, 24% tax bracket.

    1. 01Current balance grows: $25,000 x (1.07)^25 = $135,700
    2. 02Contributions grow: $583/mo at 7% for 25 years = ~$474,300
    3. 03Total projected value: ~$610,000
    4. 04Tax savings from deductions: $7,000 x 24% x 25 = $42,000

    Frequently Asked Questions

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