Traditional IRA calculator
Project a traditional IRA balance and estimate after-tax withdrawals in retirement.
What this calculator covers
Use this calculator to project a traditional IRA balance using yearly contributions and a constant annual return assumption.
It also applies an expected retirement tax rate so you can compare pretax account growth with a simplified after-tax withdrawal estimate.
Frequently asked questions
- What is the difference between a traditional IRA and a Roth IRA?
- Contributions to a traditional IRA are typically made with pre-tax dollars, so the account grows tax-deferred and withdrawals in retirement are taxed as ordinary income. Roth IRA contributions use after-tax dollars, and qualified withdrawals are tax-free. Eligibility and deductibility rules change periodically; check current IRS guidance for limits that apply to your situation.
- How does the calculator estimate the after-tax withdrawal amount?
- It multiplies the projected pretax balance by one minus the retirement tax rate you enter. That is a simplified flat-rate estimate, not a bracket-by-bracket tax calculation, so treat it as a rough planning figure rather than a precise prediction.
- What return rate should I use?
- The calculator accepts any annual return percentage you choose. Because future market performance is uncertain, many planners run scenarios with a range of values — for example, a conservative, moderate, and optimistic rate — rather than relying on a single number.
- Does the projection account for contribution limits?
- No. The calculator accepts any annual contribution amount you enter. Annual IRA contribution limits are set by the IRS and change periodically; verify the current limit before deciding how much to model.
Tool
Run the calculation
Result
RESULT · TRADITIONAL IRA BALANCE
â„–206
Primary result
$485,375.45
$30,000.00 in a traditional IRA with $6,500.00 contributed each year at 6% grows to $485,375.45 by age 65, or about $378,592.85 after applying the modeled 22% retirement tax rate.
- Future balance
- $485,375.45
- After-tax withdrawal estimate
- $378,592.85
- Total contributions
- $162,500.00
- Investment growth
- $292,875.45
Step-by-step solution
- 1.Use the retirement horizon implied by the ages: 65 - 40 = 25 years.
- 2.Compound the current balance and add an end-of-year contribution stream growing at 6% each year.
- 3.Apply the expected retirement tax rate of 22% to the ending balance to estimate after-tax withdrawals of $378,592.85.
Walkthrough
Visual walkthrough
The traditional IRA projection uses the same accumulation math as Roth, then applies a retirement tax assumption to estimate spendable withdrawals.
01
Set the retirement horizon
65 - 40 = 25 years
The retirement horizon is derived directly from the two ages so the projection stays consistent when either age changes.
02
Project the pretax account balance
6% annual return
Current savings and yearly contributions grow together until retirement under the constant-return assumption.
03
Estimate the after-tax amount
Traditional IRA withdrawals are modeled as taxable in retirement, so the after-tax figure is lower than the pretax balance.
$378,592.85 after tax