Case 1
- Current IRA balance
- 10000$
- Annual contribution
- 7500$
- Annual contribution limit
- 7500$
- Expected return
- 7%
- Account type
- Roth — taxed now, withdrawals tax-free
- Tax rate in retirement
- 22%
- Years until retirement
- 30
784,578$
Open with these valuesIRA Calculator
This calculator cannot decide which is better. It uses the same nominal deposit for both and taxes the entire Traditional balance at withdrawal, without modeling current tax deductions, invested tax savings or nondeductible basis. A fair comparison needs your current and future tax rates, deduction eligibility and a consistent after-tax cost basis.
Change any value to update the result.
784,578$ after tax
Value at retirement: 784,578 $ after taxPersonal inputs stay on this device. Sharing sends the calculator page without these values.
Examples
How the result moves
Years until retirement → Value at retirement ($ after tax)Your current valid inputs, with one value varied across the range.
How the result moves
Held fixed: Current IRA balance 10,000.00 $, Annual contribution 7,500.00 $, Annual contribution limit 7,500.00 $, Expected return 7.00 %, Account type Roth — taxed now, withdrawals tax-free, Tax rate in retirement 22.0 %.
| Years until retirement | Value at retirement ($) |
|---|---|
| 25 | 528,642 |
| 30Your value | 784,578 |
| 35 | 1,143,542 |
Worked examples
Case 2
- Current IRA balance
- 10000$
- Annual contribution
- 7500$
- Annual contribution limit
- 7500$
- Expected return
- 7%
- Account type
- Traditional — assumes deductible deposits
- Tax rate in retirement
- 22%
- Years until retirement
- 30
611,971$
Open with these valuesCase 3
- Current IRA balance
- 0$
- Annual contribution
- 8600$
- Annual contribution limit
- 8600$
- Expected return
- 6%
- Account type
- Roth — taxed now, withdrawals tax-free
- Tax rate in retirement
- 22%
- Years until retirement
- 15
200,173$
Open with these valuesHow it's calculated
(balance × (1+r)ⁿ + c × ((1+r)ⁿ − 1) ÷ r) × (1 − tax), tax only on a Traditional IRA
- StepEnter what the account holds now and what you put in each year.Account type=Roth — taxed now, withdrawals tax-free
- StepCheck the limit: 7,500 for 2026, or 8,600 from the year you turn 50.Annual contribution limit=7,500$
- StepPick Roth or Traditional, and for a Traditional add the tax rate you expect in retirement.Tax rate in retirement=22%
- ResultSet the years left. The result is the balance you can actually spend.Years until retirement=30·Current IRA balance=10,000$→784,578$ after tax
What this number means
This is a future-value projection for the account type you select. The current balance compounds at the return you enter; each annual contribution is added at year-end and grows for the remaining years. The contribution is capped at your entered limit, which defaults to the IRS's 2026 limit of 7,500, or 8,600 if you are 50 or older.
For Roth, the projected balance is shown without withdrawal tax, assuming a qualified distribution. For Traditional, the tool applies your retirement tax rate to the entire projected balance, which assumes deductible contributions and no nondeductible basis. At a 22 % rate, the displayed amount is 78 % of that balance.
The same nominal deposit goes into either account here, even though Roth deposits come from after-tax income and a deductible Traditional deposit can reduce tax today. The tool does not calculate that current deduction or invest the tax savings, so its two outputs cannot tell you which IRA is economically better. A fair choice also depends on eligibility, current and future tax rates, other income, and where tax savings would go. The return is an assumption, not a forecast.
The contribution is capped at the limit
Enter 12,000 against a 7,500 limit and the calculator uses 7,500. Contributing more than the limit is an excess contribution and carries a 6 % tax for every year it stays in the account.
From the year you turn 50, raise the limit
The catch-up contribution lifts the 2026 limit from 7,500 to 8,600. It is a field, so change it in the year you become eligible rather than waiting for this page to change.
Contributions land at the end of each year
That is the cautious assumption. Paying in every January instead multiplies the contributed part by one more year of growth — the same money, a percent or so more.
The limit comes from IRS Publication 590-A
590-A carries the contribution limits and the age-50 catch-up; 590-B carries the withdrawal rules quoted here. The growth arithmetic is not from the IRS — the test cases for it come from a published finance textbook.
Commonly misread
MisconceptionRoth and Traditional grow differently.
CorrectionWith the same nominal deposit and return, the balances grow identically here. Tax treatment differs: Roth deposits use after-tax income, while Traditional contributions may be deductible and taxable withdrawals depend on basis.
MisconceptionA Traditional balance of 500,000 is 500,000 to spend.
CorrectionUnder this tool's fully taxable Traditional-balance assumption, a 22 % rate leaves 390,000 from that balance, which is the figure this page shows. Nondeductible basis can change the actual tax.
MisconceptionI can put in as much as I like if I start late.
CorrectionThe annual limit applies whatever your age. From the year you turn 50 it rises by the catch-up amount — 1,100 for 2026 — and no further.
Reference table
| Feature | Traditional IRA | Roth IRA |
|---|---|---|
| Contribution | May be deductible if eligible | After tax, with income limits |
| Qualified withdrawal | Taxed as income | Tax-free |
| Withdrawals must start | Age 73 | Never, for the owner |
| Early withdrawal | 10 % extra tax before 59½ | 10 % extra tax before 59½ |
Questions
How much can I contribute to an IRA?
For 2026 the limit is 7,500, or 8,600 from the year you turn 50, across all your IRAs combined. It cannot exceed your taxable compensation for the year, and the IRS adjusts it most years.
Is a Roth or a Traditional IRA better?
This calculator cannot decide which is better. It uses the same nominal deposit for both and taxes the entire Traditional balance at withdrawal, without modeling current tax deductions, invested tax savings or nondeductible basis. A fair comparison needs your current and future tax rates, deduction eligibility and a consistent after-tax cost basis.
When is a Roth withdrawal tax-free?
When it is qualified: the account has been open five years and you are 59½ or older, disabled, or buying a first home with up to 10,000. Otherwise the earnings are taxable and a 10 % additional tax can apply.
When do I have to start withdrawing?
A Traditional IRA requires minimum distributions from age 73, by 1 April of the following year for the first one. A Roth IRA requires nothing during the original owner's lifetime.
What return should I assume?
That is your assumption, not a fact, which is why the field starts at 7 % rather than a promise. Try a lower figure alongside it — the gap between 5 % and 8 % over thirty years is larger than most people expect.
Does this include employer contributions or a 401(k)?
No. It models one IRA and its own contributions. A workplace plan has its own, much higher limit and belongs in a separate calculation.