IRA Calculator — Traditional IRA Growth & Tax Savings
See what your traditional IRA could be worth on the day you retire.
Your IRA
Advanced options
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Your projection
Year by year
Every year of the projection above — deposits land at the end of each year.
After retirement: required minimum distributions
| Age | IRS divisor | Required withdrawal | Balance after |
|---|
- The default projection — $10,000 saved, $6,000 a year at 7% — reaches $748,461.63 by age 67.
- Of that total, $192,000 is contributions and $546,461.63 is earnings: growth does most of the work.
- Compare mode shows the same projection for a traditional vs a Roth IRA after tax — it is all about tax timing.
Your balance by decade
Each bar is your projected balance at that age. The amber bar is retirement day — compounding does its heaviest lifting in the final decade.
Keep exploring
Three companion tools for retirement savers.
How it works
Three steps from today to retirement day.
Enter your age and balance
Your current age, the age you plan to retire, and what your IRA holds today.
Add yearly contributions
What you put in each year, up to the IRS limit, plus the return you expect.
See the split
Your projected balance, broken into what you put in and what compounding earned.
The math behind the projection
Two engines drive the result. Your starting balance compounds on its own for the full period. Your contributions form an annuity: each yearly deposit compounds for the years that remain after it lands. Contributions are modeled at the end of each year, the conservative convention.
Worked example — the default numbers above (age 35 to 67 is 32 years at 7%):
| Piece | Calculation | Result |
|---|---|---|
| Starting balance | $10,000 × 1.07³² | $87,152.71 |
| Contributions in | $6,000 × 32 years | $192,000.00 |
| Contributions grow to | $6,000 × [(1.07³² − 1) ÷ 0.07] | $661,308.93 |
| Investment earnings | $748,461.63 − $10,000 − $192,000 | $546,461.63 |
| Projected balance at 67 | $87,152.71 + $661,308.93 | $748,461.63 |
SEP and SIMPLE IRAs: the small-business routes
If you are self-employed or run a small business, two employer-style plans sit on top of the personal IRA — and their 2026 limits dwarf the $7,500 cap. Pick one in Advanced options above and the calculator applies its limit instead.
A SEP IRA is funded only by the employer — if you are a sole proprietor, that is you. For 2026 the contribution cannot exceed the lesser of 25% of compensation or $72,000, counting only the first $360,000 of compensation. There are no catch-up contributions in a SEP, but the plan is flexible: the percentage can change, or be skipped, from year to year. Money in a SEP is pre-tax, grows tax-deferred and is taxed on withdrawal, exactly like a traditional IRA — and the same required minimum distributions apply later.
A SIMPLE IRA is built for businesses with 100 or fewer employees. You fund it mainly with your own salary deferrals: up to $17,000 in 2026. The catch-up at 50 and over is a further $4,000 (a $21,000 total), and savers aged 60 to 63 get a higher catch-up of $5,250 (a $22,250 total) under SECURE 2.0. Your employer must add money too — either a dollar-for-dollar match up to 3% of pay or a flat 2% of pay for everyone eligible. Certain small employers (25 or fewer employees, or employers who elect the higher limits) get slightly higher SIMPLE caps for 2026: $18,100 of deferrals, with a $3,850 catch-up at 50 and over.
| 2026 limit (IRS) | Under 50 | 50 and over | Ages 60 to 63 |
|---|---|---|---|
| Traditional and Roth IRA | $7,500 | $8,600 | $8,600 |
| SIMPLE IRA salary deferral | $17,000 | $21,000 | $22,250 |
| SEP IRA (employer contribution) | Lesser of 25% of compensation or $72,000 — no catch-up | ||
Contribution limits for tax year 2026: IRS News Release IR-2025-111 and Notice 2025-67 (November 13, 2025); the SEP maximum is from the IRS page “SEP Contribution Limits”. Limits are usually adjusted for inflation each year.
Income limits still guard the personal IRAs. For 2026, direct Roth contributions phase out between $153,000 and $168,000 of modified AGI for single filers, and between $242,000 and $252,000 for married couples filing jointly. If you are covered by a workplace plan, the traditional IRA deduction phases out between $81,000 and $91,000 (single) or $129,000 and $149,000 (married filing jointly, contributing spouse covered); if only your spouse is covered, your deduction range is $242,000 to $252,000.
After retirement: required minimum distributions
A traditional IRA cannot compound untouched forever — the IRS eventually makes you take money out, and taxes it when you do.
Required minimum distributions (RMDs) begin at age 73 if you were born from 1951 through 1959, and at 75 if you were born in 1960 or later. Each year’s required amount is simple arithmetic: your balance on the previous December 31, divided by a life-expectancy divisor from the IRS Uniform Lifetime Table. The divisor is 26.5 at 73 and 24.6 at 75, and it shrinks every year, so the required percentage climbs — about 3.77% of the balance at 73, 4.07% at 75, and 6.25% by 85. The results above project this schedule for your own numbers, continuing your return assumption after retirement and taking only the required minimum each year.
On the default projection above, the balance reaches $748,461.63 at 67 and, left invested at 7%, stands at $1,285,996.43 at the end of age 74 — so the first required withdrawal at 75 is $1,285,996.43 ÷ 24.6 = $52,276.28. Missing an RMD is expensive: the shortfall carries a 25% excise tax (10% if you correct it promptly). A Roth IRA is the exception — it has no required distributions during the owner’s lifetime, which is one reason the Compare mode above can favour it late in life. SEP and SIMPLE IRAs follow the same RMD rules as a traditional IRA. For a dedicated year-by-year withdrawal schedule on an existing balance, use our RMD calculator.
Go deeper
The two decisions that matter more than the return you pick.
Both accounts shelter growth from yearly tax. The difference is when the IRS takes its cut:
- Traditional IRA: contributions may be deductible today, so a $6,000 deposit can cut this year’s tax bill; every dollar withdrawn in retirement is taxed as income.
- Roth IRA: no deduction today, but qualified withdrawals — contributions and earnings — come out completely tax-free.
- The tiebreaker: if your tax bracket in retirement will be lower than today’s, traditional usually wins; if it will be higher, Roth usually wins. Many savers hold both and decide year by year.
- Try it: switch the calculator above to Compare mode and run your own two tax rates — or run the same numbers in our Roth IRA calculator for the full Roth picture.
The IRS caps what you can put in, and the rules have teeth:
- Annual limit: $7,500 if you are under 50, $8,600 at 50 or over with the catch-up (2026) — across all your IRAs combined, traditional and Roth together.
- Earned income required: you can only contribute up to the income you (or your spouse) earn from work.
- Deadline: contributions for a tax year can be made until tax day of the following year, usually April 15.
- Excess penalty: contributing over the limit triggers a 6% penalty on the excess for every year it stays in the account — withdraw it promptly if it happens.
- SEP and SIMPLE IRAs: the small-business plans run on different, much bigger 2026 limits — up to $72,000 into a SEP and $17,000 of deferrals into a SIMPLE. The full table is in the SEP and SIMPLE section above.
The 10-year rule, and the annual RMDs inside it
Since the SECURE Act, most non-spouse beneficiaries must empty an inherited IRA by December 31 of the 10th year after the owner’s death. The refinement that catches people out is the July 2024 final regulations: if the owner had already begun required minimum distributions, annual RMDs are also due in years 1–9, computed from the beneficiary’s Single Life Table factor. If the owner died before their required beginning date, only the year-10 deadline applies. The IRS waivers for 2021–2024 have ended, so current-year annual RMDs must be taken or the excise tax (25%, reducible to 10% if corrected promptly) applies.
Spouses and eligible beneficiaries are different cases
A surviving spouse may roll the IRA into their own account — ending beneficiary status, deferring RMDs to their own schedule, and allowing contributions — or remain a beneficiary for penalty-free access before age 59½. Eligible designated beneficiaries (minor children to age 21, disabled or chronically ill individuals, and people no more than 10 years younger than the owner) may still stretch over life expectancy. Everyone else faces the 10-year clock, and the planning question becomes spreading withdrawals to avoid bracket spikes rather than stretching them for decades.
Frequently asked questions
Quick answers about traditional IRAs.
How does a traditional IRA grow?
Two ways at once: you keep adding contributions, and the money already inside earns returns that themselves earn returns — compounding. Because no tax is taken out along the way, the full balance keeps working for you until withdrawal.
What is the IRA contribution limit?
$7,500 a year if you are under 50, and $8,600 if you are 50 or older, including the catch-up contribution (2026 limits). The limit covers all your IRAs combined — traditional and Roth together — and you cannot contribute more than your earned income.
When do I pay tax on a traditional IRA?
At withdrawal. Contributions may be tax-deductible when you make them and growth is tax-deferred, but every dollar you take out in retirement is taxed as ordinary income. Withdrawals before age 59½ usually also face a 10% early-withdrawal penalty, with a few exceptions.
What rate of return should I assume?
There is no guaranteed number. US stocks have historically returned about 10% a year before inflation — roughly 7% after it — while bonds return less. This calculator defaults to 7%; try 5% and 9% to see a cautious and an optimistic range, and remember past performance does not guarantee future results.
How much does starting earlier really matter?
Enormously, because compounding needs time more than it needs money. Saving $7,000 a year from age 25 to 65 at 8% builds about $1,813,396 — from $280,000 of contributions. Start ten years later and the same habit builds roughly half as much.
Can I have both a traditional and a Roth IRA?
Yes, and many people do. The catch is that the annual limit applies to your combined contributions across both accounts, not to each one separately. Splitting between them hedges your tax bet: some money taxed today, some taxed in retirement.
Which is better, a traditional or a Roth IRA?
It comes down to tax timing. On equal pre-tax contributions, a traditional IRA wins when your tax rate in retirement is lower than your rate today — you deduct at the higher rate and pay at the lower one. A Roth IRA wins when your retirement rate is higher: you pay the lower rate now and every qualified withdrawal is tax-free. If the two rates are equal, the accounts finish in a dead tie after tax. Use Compare mode above to run your own two rates.
What is a SEP IRA, and how much can go in?
A SEP IRA is a retirement plan a business funds for its workers — if you are self-employed, you are both the business and the worker. Only the employer contributes. For 2026 the most that can go in is the lesser of 25% of compensation or $72,000, counting only the first $360,000 of compensation, and there is no catch-up contribution. The money is pre-tax and taxed on withdrawal, like a traditional IRA. Choose SEP IRA in Advanced options and the calculator applies this limit instead of the personal IRA limit.
What is a SIMPLE IRA, and how is its limit different?
A SIMPLE IRA is a small-business plan funded mainly by your own salary deferrals. For 2026 you can defer up to $17,000, plus a $4,000 catch-up at 50 and over (a $21,000 total), or a $5,250 catch-up at ages 60 to 63 (a $22,250 total) under SECURE 2.0. Your employer must also contribute — either a match of up to 3% of pay or a flat 2% of pay. Growth is tax-deferred and withdrawals are taxed, like a traditional IRA, and the calculator can apply these limits when you pick SIMPLE IRA in Advanced options.
When do required minimum distributions start?
For a traditional, SEP or SIMPLE IRA, required minimum distributions (RMDs) start at age 73 if you were born from 1951 through 1959, and at 75 if you were born in 1960 or later. Each year’s amount is your prior December 31 balance divided by an IRS Uniform Lifetime Table divisor — 26.5 at 73, 24.6 at 75 — and the withdrawal is taxed as income. A Roth IRA has no RMDs during the owner’s lifetime. The results above project your RMD schedule year by year after retirement.
What is the inherited IRA 10-year rule?
Most non-spouse beneficiaries inheriting after 2019 must fully distribute the account by December 31 of the 10th year after the owner's death.
Are annual RMDs required during the 10 years?
Yes, if the owner had already begun RMDs — annual RMDs from the beneficiary's life expectancy are due in years 1–9 plus full distribution by year 10. If the owner died before their required beginning date, no annual RMDs are due.
Can a spouse avoid the 10-year rule?
Yes, by rolling the IRA into their own account or treating it as their own, which ends beneficiary status entirely.
Who else escapes the 10-year rule?
Eligible designated beneficiaries: minor children of the owner (to age 21), disabled or chronically ill individuals, and people no more than 10 years younger than the owner.
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Disclaimer
This calculator is for information and education only and is not tax or financial advice. Projections are hypothetical: they assume a constant return that real markets never deliver, and they ignore fees, inflation and future tax-law changes. Whether a contribution is deductible depends on your income and workplace-plan coverage — check your own situation with a qualified tax professional.