Traditional IRA Calculator
Project tax-deferred growth in your Traditional IRA with deduction analysis and RMD planning.
US-Specific Calculator
Traditional IRAs are US retirement accounts. Tax deductions and RMD rules follow IRS guidelines.
2024 Limit: $7,000
Catch-Up When 50+
Auto-add $1,000 at age 50
Covered by Workplace Plan
401(k), pension, etc.
Check Deductibility
Verify income limits
Expected tax bracket when withdrawing
RMDs begin at age 73; plan for required distributions
$1,190,539.04
$928,620.45
$62,640.00
Tax Savings Now
+$62,640.00
From deductions
Taxes in Retirement
-$261,918.59
On withdrawals
Lower retirement tax bracket = net benefit from deferral
RMDs Begin at Age 73
You'll be required to withdraw a minimum amount each year starting at age 73, whether you need the money or not.
Estimated First Year RMD:
$44,926.00
Based on projected balance at age 73
Traditional IRA
$928,620.45
After-tax value
Roth Equivalent
$928,620.45
Tax-free at withdrawal
Traditional IRA is better (lower future taxes)
Break-even tax rate: 24.0%
| Age | Contribution | Tax Deduction | Balance |
|---|---|---|---|
| 31 | $7,000.00 | $1,680.00 | $23,295.00 |
| 32 | $7,000.00 | $1,680.00 | $32,170.65 |
| 33 | $7,000.00 | $1,680.00 | $41,667.60 |
| 34 | $7,000.00 | $1,680.00 | $51,829.33 |
| 35 | $7,000.00 | $1,680.00 | $62,702.38 |
| 36 | $7,000.00 | $1,680.00 | $74,336.55 |
| 37 | $7,000.00 | $1,680.00 | $86,785.10 |
| 38 | $7,000.00 | $1,680.00 | $100,105.06 |
| 39 | $7,000.00 | $1,680.00 | $114,357.42 |
| 40 | $7,000.00 | $1,680.00 | $129,607.44 |
Traditional IRA Explained
How It Works
- Contribute Pre-Tax: Reduce taxable income now
- Grow Tax-Deferred: No taxes on gains until withdrawal
- Pay Taxes Later: Withdrawals taxed as ordinary income
- RMDs Required: Must start withdrawing at age 73
2024 Limits
- Under 50: $7,000/year
- Age 50+: $8,000/year
Deduction Limits (2024)
If covered by a workplace plan, deductions phase out at higher incomes:
- Single: $77,000 - $87,000
- Married Joint: $123,000 - $143,000
When Traditional Beats Roth
- You expect to be in a lower tax bracket in retirement
- You need the tax deduction now
- You're in a high tax bracket currently
- You'll move to a no-income-tax state