IRA Calculator

An Individual Retirement Arrangement is a tax-advantaged account designed for retirement savings. Traditional IRAs may offer an upfront deduction with taxable withdrawals later; Roth IRAs are funded with after-tax dollars and offer generally tax-free qualified withdrawals. Either way, investments inside the account grow without annual tax drag.

Traditional IRAs are typically funded with pre-tax dollars; you may deduct contributions now (subject to income and workplace-plan rules) and pay ordinary income tax on withdrawals. Roth IRAs are funded with after-tax dollars; qualified withdrawals in retirement are generally tax-free. Growth math is identical; the difference is when tax is paid.

The IRS sets an annual limit that can change yearly. The same limit usually applies across all your Traditional and Roth IRAs combined. There is also a catch-up contribution for savers age 50 and older. Roth IRAs have income phase-outs; Traditional IRA deductibility may phase out if you or your spouse have a workplace plan. Check the current IRS limit before contributing.

Each year, the existing balance grows at the expected return. If contributions are made at the beginning of the year, the contribution is added before that year's growth and compounds for the full year. If contributions are made at the end of the year, growth applies to the starting balance only and the contribution lands afterward. End-of-year is the conservative default for projections.

Long-run U.S. stock market returns have averaged roughly 6 to 10% nominal before inflation, depending on the period. A diversified balanced portfolio (stocks plus bonds) usually projects somewhere between those numbers. Use a number that fits your asset allocation and risk tolerance, and re-project periodically with actual results.

No. The projection is a pre-tax IRA account value at a future date. Traditional IRA withdrawals are typically taxed as ordinary income; Roth qualified withdrawals are generally tax-free. Sequence-of-returns risk, inflation, required minimum distributions, and the actual return achieved all affect spendable income.

No. The model uses a single net return rate. To incorporate fees, subtract the fund expense ratio and any advisor fee from the expected return. To project in today's dollars, subtract an inflation estimate from the return to get a real (inflation-adjusted) growth rate.

No. This is an educational growth projection. It does not consider your tax bracket, full financial picture, or the specific IRS rules that apply to your situation. Consult a qualified financial professional and the latest IRS publications before contributing or withdrawing.

A backdoor Roth IRA is when you contribute to a traditional IRA (without taking the deduction), then convert it to a Roth IRA. This strategy is used by high earners who exceed the income limits for direct Roth contributions. The conversion may trigger taxes on any growth, and the "pro-rata rule" can create complications if you have other traditional IRA money. Consult a tax professional.

Yes. You can have multiple IRA accounts, but your TOTAL annual contributions across all IRAs cannot exceed the annual limit ($7,000 or $8,000 if 50+ in 2026). Splitting contributions between traditional and Roth provides tax diversification — some retirement income will be tax-free, some taxable.