Financial Calculators

Traditional IRA Calculator

Contributing to a Traditional IRA can create a current tax deduction, plus it provides for tax deferred growth. While long term savings in a Roth IRA may produce better after tax returns, a Traditional IRA may be an excellent alternative if you qualify for the tax deduction.

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Definitions

Current age:Your current age
Age of retirement:Age you wish to retire. This calculator assumes that the year you retire you do not make any contributions to your IRA. So if you retire at age 65, your last contribution happened when you were actually 64.
Annual contribution:The amount you contribute to your Traditional IRA each year. This calculator assumes that you make your contribution at the beginning of each year.

Depending on your annual income and if you have an employer retirement plan, all or a portion of your Traditional IRA contribution may be tax deductible. For Single people an IRA contribution is fully tax deductible if your income is below $25,000. It is then prorated between $25,000 to $35,000. If your income is over $35,000 you receive no tax deduction. For married couples if your annual income is under $40,000 your contribution is fully tax deductible. If your income is over $50,000 there is no tax deduction. The deduction is prorated between $40,000 to $50,000. If you have no employer plan your contribution is tax deductible regardless of your income and tax filing status.

Expected rate of return:The annual percent you expect to earn on your investment.
Current tax rate:Your current marginal tax rate you expect to pay on your taxable investments.
Retirement tax rate:The marginal tax rate you expect to pay on your investments at retirement.
Adjusted gross income:What you anticipate your income to be. This is used to calculate whether you are able to deduct your annual contributions from your taxes.
Married:Check the box if you are married. This is used to determine whether you can deduct your annual contributions from your taxes.
Years until retirement:Number of years before retirement.
Employer plan:Check the box if you have an employer sponsored retirement plan, such as a 401k or pension. This is used to determine if you can deduct your annual contributions from your taxes.
Total non-deductible contributions:The total amount for your contributions that were deposited without a tax deduction.
Total contributions:The total amount contributed to this IRA.
IRA total before taxes:Total value of your IRA at retirement before taxes.
IRA total after taxes:Total value of your IRA at retirement after taxes are paid.
Total taxable account:Total value of your savings, at retirement, if the after tax contribution amount is deposited into a taxable account.


information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.