Are Traditional IRA contributions tax-deductible?

It depends on your income and whether you have a workplace retirement plan. Full deductions are available below certain income thresholds.

What are Required Minimum Distributions?

Starting at age 73, you must withdraw a minimum amount each year from your Traditional IRA. The amount is based on your balance and life expectancy.

Yes, but the combined contribution limit is $7,000 ($8,000 if 50+) across all IRAs in 2024.

Calculate Traditional IRA growth with tax-deductible contributions and estimate after-tax retirement value.

Current Balance

USD

Annual Contribution

USD

Expected Return

Years to Retirement

years

Expected Retirement Tax Rate

Pre-Tax Value

$587,050

After-Tax Value$457,899

Annual Tax Savings Now$1,540

Pre-Tax Value vs Years to Retirement

Contributions may be tax-deductible, reducing your current taxable income. Growth is tax-deferred, but withdrawals are taxed as ordinary income.

After-Tax = Pre-Tax Value x (1 - Retirement Tax Rate)

Traditional IRAs require minimum distributions (RMDs) starting at age 73.

$20,000 balance, $7,000/year, 7% return, 25 years, 22% retirement tax.