Project how a traditional IRA could grow by retirement, with the 2026 contribution limit and age-50 catch-up applied. The calculator then taxes withdrawals at your expected retirement rate and compares the result with investing the same money in a regular taxable account, so you can see what tax deferral is really worth.
Last updated:
You
years
years
Traditional IRA
$
$
%
%
$
2026: $7,500 (2025: $7,000)
$
2026: $1,100 (2025: $1,000)
Taxes
%
Federal + state marginal rate
%
Rate on withdrawals
%
For the comparison: e.g. 15% on dividends and gains
%
Enter your values to see the result.
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How to use the Traditional IRA Calculator
Enter your age and the age you plan to retire.
Add your IRA: current balance, yearly contribution, expected return and any yearly increase.
Keep the IRS cap on to limit contributions to the yearly limit plus catch-up from 50, and say whether they are deductible.
Set tax rates: your rate now, your expected rate in retirement and the yearly tax a taxable account would pay on growth.
Press Calculate to see the balance, after-tax value, the comparison and a year-by-year table.
How the traditional IRA projection works
Each year's contribution is added at the start of the year and the account grows at your expected return:
IRAnext = (IRA + contribution) × (1 + r)
At retirement the whole balance of a deductible IRA is taxable, so its after-tax value = balance × (1 − retirement tax rate). For non-deductible contributions only the earnings are taxed: after-tax value = balance − (balance − basis) × rate.
The taxable account comparison starts from the same pre-tax dollars. With a deductible IRA you would have only (1 − tax rate now) of each contribution to invest after paying tax, and its growth is taxed every year, so it compounds at r × (1 − yearly tax rate). This is the fair way to measure what tax deferral is worth.
Traditional IRA limits and deduction phase-outs
Item
2025
2026
Contribution limit
$7,000
$7,500
Catch-up, age 50+
$1,000
$1,100
Deduction phase-out, single, covered by a work plan
$79,000 – $89,000
$81,000 – $91,000
Phase-out, married jointly, contributor covered
$126,000 – $146,000
$129,000 – $149,000
Phase-out, married jointly, only spouse covered
$236,000 – $246,000
$242,000 – $252,000
Source: IRS annual cost-of-living adjustments. If you are above the phase-out you can still contribute, but the contribution is non-deductible; untick "Contributions are tax-deductible" to model that.
What tax deferral is worth: an example
$7,500 a year for 30 years at 7%, tax rate 22% now and 22% in retirement, taxable-account growth taxed at 15% each year:
Traditional IRA: about $758,000 pre-tax, or about $591,000 after 22% tax.
Taxable account: $5,850 invested each year (after 22% tax) growing at 5.95% comes to about $486,000.
The IRA ends up about 22% ahead, purely from avoiding yearly tax on growth. A lower tax rate in retirement widens the gap; a higher one narrows it.
Tips
Contribute until the tax-filing deadline: contributions for a tax year can be made until mid-April of the following year.
Spousal IRA: a non-working spouse can contribute based on the working spouse's income when you file jointly.
Roll over old 401(k)s into an IRA for more investment choice, but keep in mind the pro-rata rule if you plan backdoor Roth conversions.
Frequently asked questions
How much can I put in a traditional IRA in 2026?
The 2026 limit is $7,500, plus a $1,100 catch-up contribution if you are 50 or older, for $8,600 total. In 2025 the figures were $7,000 and $1,000. The limit is shared across all your traditional and Roth IRAs and cannot exceed your taxable compensation.
Are traditional IRA contributions tax-deductible?
They are fully deductible if neither you nor your spouse is covered by a workplace retirement plan. If you are covered, the deduction phases out at higher incomes; for 2026 the phase-out is $81,000 to $91,000 of modified AGI for single filers and $129,000 to $149,000 for married couples filing jointly when the contributor is covered.
How is a traditional IRA taxed?
Deductible contributions go in before tax and grow tax-deferred. Every dollar you withdraw is taxed as ordinary income. If you made non-deductible contributions, that basis comes out tax-free and only the earnings are taxed. Withdrawals before 59½ usually add a 10% penalty.
Is a traditional IRA better than a taxable account?
Usually, because growth is not taxed each year and the deduction lets you invest more upfront. With a deductible IRA and equal tax rates now and later, the IRA wins by exactly the yearly tax drag a taxable account would suffer. It can lose if your retirement tax rate is much higher than today's.
When do I have to take money out?
Required minimum distributions (RMDs) begin at age 73 for people born 1951-1959 and at 75 for those born in 1960 or later. You can withdraw penalty-free from age 59½.
Traditional or Roth IRA?
A traditional IRA tends to win when your tax rate in retirement will be lower than today's; a Roth wins when it will be higher. If you expect the same rate, the two give about the same after-tax result. Our Traditional vs Roth IRA calculator compares them directly.
What return should I assume?
Over long periods US stocks have returned roughly 10% a year before inflation (about 7% after inflation), and balanced stock-and-bond portfolios less. Many planners project with 5% to 7% and also test a lower figure. Returns are never guaranteed.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.