Calculateur IRA TraditionnelFormule

## Traditional IRA

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

### After-Tax Retirement Value

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

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

Exemple Résolu

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

  1. Pre-tax value = ~$618,000
  2. After-tax = $618,000 x (1 - 0.22) = ~$482,000
  3. Annual tax savings now = $7,000 x 0.22 = $1,540