IRA Calculator
Project your IRA balance and compare Roth and Traditional after taxes, using the 2026 contribution limits.
IRA Calculator
For 2026 you can put up to $7,500 in an IRA, or $8,600 if you are 50 or older. A 35-year-old with $25,000 who contributes $7,500 a year at 7% reaches about $948,354 by 65. In a Roth that is all spendable tax-free; in a Traditional IRA with a 15% retirement tax rate it is about $806,101 after tax.
How to use this IRA calculator
- Enter your age, retirement age, current IRA balance and your yearly contribution.
- Enter your expected annual return and inflation.
- Enter your marginal tax rate today and the rate you expect in retirement.
- Read the projected balance and the after-tax value of a Roth and a Traditional IRA.
- Check the better choice, the tax you save today with a Traditional IRA, and the 2026 limit for your age.
The math behind the result
Balance = (previous balance + yearly contribution) × (1 + return), repeated each year until retirement.
Roth after-tax value = balance (qualified withdrawals are tax-free). Traditional after-tax value = balance × (1 − tax rate in retirement). The Traditional IRA also saves contribution × tax rate today each year if the contribution is deductible.
Rule of thumb: Traditional wins when your tax rate in retirement is lower than today; Roth wins when it is higher.
Worked example
Age 35, retire at 65, $25,000 balance, $7,500 a year at the start of each year, 7% return, 22% tax rate today, 15% in retirement:
- IRA balance at 65: $948,354 (about $390,709 in today’s dollars at 3% inflation)
- Roth, spendable after tax: $948,354
- Traditional, spendable after tax: $806,101 (balance × 85%)
- Traditional also saves $1,650 of tax each year on the $7,500 deduction, which can be invested
If you expect a 24% rate in retirement while paying 12% today, Roth is the better choice.
2026 IRA contribution limits
The IRA limit for 2026 is $7,500, up from $7,000, plus a $1,100 catch-up for people 50 and older, for $8,600 in total. The limit applies to all your IRAs combined, and you cannot contribute more than your taxable compensation for the year. A spouse without income can contribute through a spousal IRA if the couple files jointly.
Roth IRA income limits for 2026
Roth IRA contributions phase out for single filers and heads of household with modified adjusted gross income between $153,000 and $168,000, and for married couples filing jointly between $242,000 and $252,000. Above the top of the range you cannot contribute directly. High earners sometimes use a backdoor Roth conversion; talk to a tax professional first.
Traditional IRA deduction rules
Anyone with earned income can contribute to a Traditional IRA, but the tax deduction may be reduced or eliminated if you or your spouse are covered by a workplace plan like a 401(k) and your income is above a threshold. For married couples filing jointly where the contributor is covered by a plan, the 2026 deduction phases out between $129,000 and $149,000.
Roth or Traditional?
Choose Traditional when you expect a lower tax rate in retirement and want the deduction now. Choose Roth when you expect a higher tax rate later, want tax-free income, or want to avoid required minimum distributions. Roth IRAs have no RMDs for the original owner, while Traditional IRAs require withdrawals starting at age 73. Many savers split contributions between both to diversify taxes.
Early withdrawals and the five-year rule
Withdrawals of earnings before age 59½ are generally taxed and face a 10% penalty, with exceptions. You can withdraw Roth contributions at any time without tax or penalty, but earnings need the account to be at least five years old and you to be 59½ or older to be tax-free.
Key terms
- Traditional IRA
- An account with possibly deductible contributions and taxable withdrawals.
- Roth IRA
- An account funded with after-tax money and tax-free qualified withdrawals.
- MAGI
- Modified adjusted gross income, used for IRA eligibility.
- RMD
- Required minimum distribution from Traditional IRAs starting at age 73.
- Catch-up contribution
- Extra contributions allowed from age 50.
Frequently asked questions
What is the IRA contribution limit for 2026?
$7,500, or $8,600 if you are 50 or older. The limit applies to all your Traditional and Roth IRAs combined.
Is a Roth IRA or Traditional IRA better?
It depends on whether your tax rate will be higher or lower in retirement. Roth is better if you expect a higher rate; Traditional is better if you expect a lower one and can deduct the contribution.
Who can contribute to a Roth IRA in 2026?
Single filers with modified adjusted gross income under $153,000 can contribute the full amount, phasing out up to $168,000. For married couples filing jointly the range is $242,000 to $252,000.
How much will my IRA be worth at retirement?
It depends on your contributions and return. Contributing $7,500 a year for 30 years at 7% starting from $25,000 gives about $948,354.
Can I have both a 401(k) and an IRA?
Yes. The limits are separate, but a workplace plan can reduce your Traditional IRA deduction at higher incomes.
When do I have to take withdrawals from an IRA?
Traditional IRAs require minimum distributions starting at age 73. Roth IRAs have no required distributions for the original owner.
Can I take money out of my IRA early?
You can, but earnings withdrawn before age 59½ are usually taxed with a 10% penalty, with some exceptions. Roth contributions can be withdrawn anytime without tax or penalty.
Sources and further reading
- IRS: 401(k) limit increases to $24,500 and IRA limit to $7,500 for 2026
- IRS: Roth IRAs
- IRS: Retirement topics, catch-up contributions
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Figures in the examples are illustrative and use the inputs shown. Market rates and program rules change; confirm current terms with your lender or the linked official sources before making a decision.
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Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Results depend on the figures you enter and on simplified assumptions; actual rates, taxes, and outcomes will differ. Consult a qualified professional before making financial decisions.