IRA Calculator
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What Your Result Means
- Pre-Tax Value: The total account balance at retirement before taxes, showing your growth from contributions and investment returns.
- After-Tax Value: The remaining balance after applying your expected tax rate in retirement, showing actual purchasing power.
- Total Contributions: The sum of your current balance and all annual contributions made during the accumulation period.
- Annual Tax Savings Now: The current tax year's deduction benefit, reducing your taxable income by the contribution amount times your current tax rate.
How This Calculator Works
This calculator projects IRA growth using compound interest. It multiplies your current balance by the compound factor (1 + return rate)^years to find future value. For contributions, it applies the annuity formula to sum all future contributions with compounding. Results show both pre-tax accumulation and after-tax value based on expected retirement tax rates. The calculator also estimates your immediate tax deduction benefit at your current rate. Note: The IRS enforces annual contribution limits and income-based deduction limits that vary by filing status and other factors.
Quick Questions
What's the difference between pre-tax and after-tax value?
Pre-tax is your account balance before withdrawal taxes. After-tax value deducts your expected retirement tax rate, showing what you'll actually keep. This assumes you'll owe income tax on withdrawals—traditional IRAs are taxed at your ordinary income rate.
Why is the tax savings lower than my contribution?
Tax savings equals your contribution × your current tax rate. If you contribute $5,000 and are in the 24% bracket, savings is $1,200. Higher earners may not qualify for full deductibility—check IRS rules for your income level and filing status.
Does this account for contribution limits?
No. For 2025 the IRS limits contributions to $7,000 annually ($8,000 if age 50+). Your actual annual contributions must not exceed these limits. Check IRS.gov for the most current limits and income eligibility rules.
Sources
- IRS: Traditional IRAs (deductibility, limits, rules)
- IRS Publication 590-A (traditional IRA contributions and deductions)
- IRS: Contribution Limits (annual maximums)
Method & review
Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.