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IRA Retirement Calculator
Compare Traditional vs Roth IRA growth and tax implications
Your IRA Information
Traditional IRA: Tax-deductible contributions, taxed at withdrawal
2023 contribution limit: $6,500 ($7,500 if age 50+)
For Traditional IRA withdrawal calculations
Your IRA Projection
Years to Retirement
30
Future IRA Balance
$0
Total Contributions
$0
Investment Growth
$0
After-Tax Value
$0
Annual Income Supported
$0
Retirement Goal Status
-
Traditional vs Roth IRA Comparison
| Feature | Traditional IRA | Roth IRA |
|---|---|---|
| Tax Treatment | Tax-deductible contributions | After-tax contributions |
| Withdrawals | Taxed as ordinary income | Tax-free withdrawals |
| Required Minimum Distributions | Yes, starting at age 73 | None during account owner's lifetime |
| Early Withdrawal Penalty | 10% before age 59½ | On earnings before age 59½ |
Contributions vs Growth
Balance Growth
Annual Growth
Understanding IRA Accounts
Individual Retirement Accounts (IRAs) are powerful tax-advantaged savings vehicles designed to help individuals save for retirement. Our calculator helps you project how your IRA will grow over time and compare the tax implications of Traditional vs Roth IRAs.
Key IRA Formulas Used:
Future Value of Current Balance: FV = PV × (1 + r)^n
Where PV is your current IRA balance, r is the annual return rate, and n is the number of years until retirement.
Future Value of Annual Contributions: FV = P × [((1 + r)^n – 1) / r]
Where P is your annual contribution, r is the annual return rate, and n is the number of years.
Tax Impact Calculation:
- Traditional IRA: After-Tax Value = Future Value × (1 – Retirement Tax Rate)
- Roth IRA: After-Tax Value = Future Value (tax-free withdrawals)
IRA Contribution Limits (2023):
- Under age 50: $6,500 per year
- Age 50 and over: $7,500 per year (includes $1,000 catch-up contribution)
- Income limits: Roth IRA contributions phase out at higher income levels
Traditional vs Roth IRA: Which Is Right for You?
Choose Traditional IRA if:
- You expect to be in a lower tax bracket during retirement
- You want tax deductions now
- You’re closer to retirement age
Choose Roth IRA if:
- You expect to be in a higher tax bracket during retirement
- You want tax-free withdrawals in retirement
- You’re younger and have more time for tax-free growth
- You want to avoid required minimum distributions (RMDs)
IRA Planning Strategies:
- Contribute early and consistently to maximize compound growth
- Consider a “backdoor Roth IRA” if your income exceeds contribution limits
- Diversify with both Traditional and Roth IRAs for tax flexibility
- Review your investment allocation annually
- Avoid early withdrawals to prevent taxes and penalties