Free IRA calculator. Compare Traditional vs Roth IRA growth, contribution limits, tax savings, RMD estimates, and Roth income phase-outs for 2024-2026.
The IRA Calculator helps you project your Individual Retirement Account growth, compare Traditional vs Roth IRA strategies, and understand contribution limits, tax implications, and required minimum distributions. Whether you are choosing between account types or optimizing your existing IRA contributions, this tool gives you a clear picture of your retirement savings trajectory.
An Individual Retirement Account (IRA) is a tax-advantaged investment account that helps you save for retirement independently of employer plans. Traditional IRA contributions are tax-deductible (reducing your taxable income now), while Roth IRA contributions are made with after-tax dollars but grow and withdraw completely tax-free in retirement. For 2026, you can contribute up to $7,500 per year ($8,500 if you are 50 or older).
This calculator projects both Traditional and Roth IRA balances side by side, calculates your after-tax retirement value for each, estimates your first Required Minimum Distribution (RMD) for Traditional accounts at age 73, checks your Roth IRA income eligibility, and shows the breakeven point between the two strategies based on your current and expected retirement tax rates.
The Traditional vs Roth decision can mean tens of thousands of dollars difference in retirement. This calculator quantifies that difference using your actual tax rates, income, and timeline. It also flags Roth income phase-outs you might miss, estimates your RMD obligation, and helps you decide whether to contribute to Traditional, Roth, or split between both.
Future Value = PV × (1 + r)^n + PMT × ((1 + r)^n − 1) / r Traditional After-Tax = Future Value × (1 − Retirement Tax Rate) Roth After-Tax = Future Value (tax-free withdrawals) Annual Tax Savings (Traditional) = Contribution × Current Tax Rate RMD = Account Balance ÷ Life Expectancy Factor (using IRS Uniform Lifetime Table) Roth Phase-Out: Contribution reduced when MAGI exceeds threshold
Result: Traditional: $1,067,000 ($907,000 after-tax) vs Roth: $1,067,000 (100% tax-free)
Contributing $7,000/yr for 35 years at 7% return builds $1,067,000 in either account type. The Traditional IRA saves $1,540/yr in taxes now but is worth $907,000 after 15% retirement tax. The Roth IRA has no upfront deduction but delivers the full $1,067,000 tax-free. With a lower retirement tax rate, Traditional wins; if rates were equal, Roth would be better.
The core difference is timing of taxation. Traditional IRAs give you a tax break today — your contributions reduce taxable income, providing immediate savings at your marginal rate. But every dollar withdrawn in retirement is taxed as ordinary income. Roth IRAs offer no upfront deduction, but qualified withdrawals are 100% tax-free, including decades of accumulated gains. The optimal choice depends on whether your tax rate is higher now or will be higher in retirement.
High earners face restrictions on direct Roth IRA contributions. For 2026, single filers begin losing eligibility at $155,000 MAGI, with contributions fully phased out at $170,000. Married filing jointly, the range is $240,000-$250,000. If your reduced contribution limit is below $200, you cannot contribute at all. However, the backdoor Roth conversion strategy remains available regardless of income, making Roth accessible to everyone with proper planning.
Both IRA types impose a 10% early withdrawal penalty on earnings before age 59½ (with exceptions for first-time home purchase up to $10,000, qualified education expenses, and disability). Roth IRAs offer more flexibility because contributions (not earnings) can be withdrawn tax and penalty-free at any time. Traditional IRA holders must begin RMDs at 73, while Roth IRAs have no lifetime RMDs — making them an excellent wealth transfer vehicle and a hedge against future tax rate increases.
Traditional IRA contributions may be tax-deductible, reducing your taxes now, but withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are made with after-tax money, but qualified withdrawals (after age 59½ and 5 years) are completely tax-free, including all gains.
For 2026, you can contribute up to $7,500 to IRAs if under 50, or $8,500 if 50 or older. This is the combined limit across all your Traditional and Roth IRAs. You cannot contribute more than your earned income.
For 2026, single filers can make full Roth contributions if MAGI is under $155,000 (phased out between $155,000-$170,000). Married filing jointly, the phase-out is $240,000-$250,000. Above these limits, consider a backdoor Roth conversion.
Traditional IRA holders must begin taking RMDs at age 73 (under SECURE Act 2.0). The amount is calculated by dividing your account balance by the IRS life expectancy factor. Roth IRAs have no RMDs during the owner lifetime, which is a significant planning advantage.
Choose Traditional if you are in a high tax bracket now and expect to be in a lower one in retirement. Choose Roth if you are in a lower bracket now, expect higher taxes later, or want tax-free withdrawals and no RMDs. Many advisors recommend contributing to both for tax diversification.
Yes, you can contribute to both. However, your Traditional IRA deduction may be limited if you or your spouse is covered by a workplace plan and your income exceeds certain thresholds. Roth IRA contributions are independent of workplace plans, subject only to income limits.
A backdoor Roth involves making a non-deductible Traditional IRA contribution and then converting it to a Roth IRA. This strategy lets high earners who exceed Roth income limits still get money into a Roth. Be aware of the pro-rata rule if you have existing Traditional IRA balances.