IRA Calculator
Calculate the value of your Individual Retirement Account at retirement and compare Traditional vs Roth IRA options
IRA Details
Expected years of withdrawals during retirement
Actual: 35 years (limited by retirement age)
2024 limit: $7,000 ($8,000 if age 50+)
Historical S&P 500 average: ~10%
Results for Traditional IRA
IRA Analysis
Example Calculation
Traditional IRA Example
Age: 30 → 65 (35 years)
Annual contribution: $6,000
Annual return: 7%
Tax bracket (working): 22%
Tax bracket (retirement): 12%
Results
Total contributions: $210,000
IRA balance at 65: ~$1,141,000
Annual tax savings during working years: $1,320
After-tax annual withdrawal: ~$38,000
IRA Types
Traditional IRA
Tax-deductible contributions, taxed withdrawals
Best if you expect lower tax bracket in retirement
Roth IRA
After-tax contributions, tax-free withdrawals
Best if you expect higher tax bracket in retirement
SEP IRA
For self-employed and small business owners
Higher contribution limits up to $69,000
SIMPLE IRA
For small businesses with <100 employees
2024 limit: $16,000 ($19,500 if age 50+)
2024 Contribution Limits
IRA Tips
Start early to maximize compound growth
Contribute the maximum amount allowed
Consider your current vs future tax bracket
Diversify investments within your IRA
Avoid early withdrawals (10% penalty)
Understanding Individual Retirement Accounts (IRAs)
What is an IRA?
An Individual Retirement Account (IRA) is a tax-advantaged savings plan designed to help you save for retirement. IRAs encourage long-term investing by allowing your investments to grow tax-free or tax-deferred.
Traditional vs Roth IRA
- •Traditional IRA: Tax-deductible contributions, taxed on withdrawals
- •Roth IRA: After-tax contributions, tax-free withdrawals
- •Choose Traditional if you expect lower tax bracket in retirement
- •Choose Roth if you expect higher tax bracket in retirement
Key Benefits
- •Tax advantages encourage retirement savings
- •Wide range of investment options
- •Compound growth over decades
- •Control over investment decisions
Important Rules
- •10% penalty for early withdrawals before age 59½
- •Required Minimum Distributions (RMD) at age 73 for Traditional IRA
- •No RMD for Roth IRA during owner's lifetime