Traditional IRA Calculator: Project a Pre-Tax Retirement Balance

Project how a traditional IRA could grow when funded with pre-tax dollars and left to compound until retirement.

Investment Details
$
What the traditional IRA holds today.
Default sourced from S&P Dow Jones Indices (as of December 31, 2025).
$
Your estimate $—

Adjust the inputs and select Calculate for a full breakdown.

Compare Common Scenarios

How the numbers shift across typical situations for this calculator:

ScenarioFuture valueTotal contributionsTotal interest earned
$20k · $500/mo · 7% · 25yr$519,544.21$170,000.00$349,544.21
$0 · $400/mo · 8% · 30yr$596,143.78$144,000.00$452,143.78
$80k · $600/mo · 6% · 15yr$370,818.71$188,000.00$182,818.71
$35k · $250/mo · 7% · 20yr$271,587.52$95,000.00$176,587.52

How This Calculator Works

Enter the current IRA balance, the average annual return you expect, the years until retirement, and your monthly contribution. The calculator compounds the balance monthly and adds each contribution, showing the projected balance and the share built by growth.

The Formula

Future Value with Regular Contributions

FV = P(1 + r)^n + PMT · ((1 + r)^n − 1) / r

P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months

Worked Example

With $20,000 saved, $500 added monthly, and a 7% average return over 25 years, a traditional IRA reaches about $519,500. Contributions account for $170,000; investment growth supplies the other $349,500.

Key Insight

A traditional IRA defers tax: contributions may be deductible now, and growth is untaxed until withdrawal, when it is taxed as income. Required minimum distributions eventually force withdrawals, unlike a Roth IRA.

Deductibility rules: covered by 401(k) or not changes everything

Traditional IRA contributions ($7,000/$8,000 with catch-up in 2026) MAY be deductible — depending on whether you're 'covered' by a workplace retirement plan AND your income. If NOT covered by 401k/SEP/SIMPLE/etc. at work: contributions are FULLY deductible regardless of income.

If COVERED by workplace plan: deduction phases out by income. 2026 phase-outs for single filer covered by workplace plan: full deduction under $79,000 MAGI, partial $79,000-$89,000, no deduction above $89,000. Married filing jointly (you covered): full under $126,000, partial $126,000-$146,000, no deduction above $146,000.

If your spouse is covered by workplace plan but you're not: separate phase-out — full deduction under $236,000, no deduction above $246,000 (2026). This affects high-earning married couples where one spouse has retirement plan access.

Non-deductible Traditional IRA: when you contribute despite no deduction

Even if your income is too high for deductibility, you CAN still contribute to a Traditional IRA — but the contribution is 'non-deductible'. It still gets tax-deferred growth (interest, dividends, gains aren't taxed annually) but on withdrawal, only the EARNINGS portion is taxable; the original contribution comes out tax-free.

Backdoor Roth strategy: high earners use non-deductible Traditional IRA contributions as a STEPPING STONE to Roth IRA. Contribute $7,000 non-deductible to Traditional → immediately convert to Roth ($0 tax owed since contribution wasn't deducted) → now in Roth which has no income limit at conversion. Effectively bypasses Roth income limits.

Pro-rata rule trap: backdoor Roth ONLY works cleanly if you have NO OTHER pre-tax IRA balances. If you have a rollover IRA from a previous 401(k) with $50k in it, the pro-rata rule blends your non-deductible contribution with that balance, making most of the conversion taxable. Fix: roll the pre-tax IRA balance INTO your current 401(k) first (if your 401k accepts rollovers in), clearing the deck for backdoor Roth contributions. Many high earners miss this nuance and trigger unexpected tax bills.

RMDs from Traditional IRA: required at 73

Traditional IRAs trigger Required Minimum Distributions (RMDs) starting at age 73 (raised from 72 in 2023 by SECURE 2.0; rising to 75 in 2033). You must withdraw at least the RMD amount each year, calculated as account balance ÷ life expectancy factor from IRS Uniform Lifetime Table.

Worked example: $500,000 Traditional IRA at age 73. Uniform Lifetime Table factor: 26.5. RMD = $500,000 / 26.5 = $18,868. This amount must be withdrawn by December 31 of the year you turn 73 (or April 1 of the following year for first RMD only). Failure: 25% penalty on the RMD shortfall (reduced from 50% by SECURE 2.0).

Each year the factor decreases (life expectancy shortens), so the percentage withdrawn increases. By age 80: factor 18.7 = 5.35% of balance. By 90: factor 11.4 = 8.77%. The forced withdrawals can push retirees into higher tax brackets unexpectedly. QCDs (Qualified Charitable Distributions, available at 70.5+) let you donate up to $108,000 directly from IRA to charity, satisfying RMD without taxable income — a powerful tool for charitably-inclined retirees.

Traditional IRA deduction phase-outs (2026)

MAGI phase-outs apply ONLY if you or your spouse is covered by a workplace retirement plan. Otherwise, contributions are fully deductible regardless of income.

Filing statusYou coveredPhase-out rangeSpouse covered (you not)
SingleFull < $79k$79,000 - $89,000N/A
Married filing jointlyFull < $126k$126,000 - $146,000Full < $236k / phase-out to $246k
Married filing separatelyPhase-out $0 - $10k$0 - $10,000Same
Head of householdFull < $79k$79,000 - $89,000N/A

Above the upper end of phase-out, no deduction allowed. Non-deductible contributions still possible (tax-deferred growth) — useful for backdoor Roth strategy. The $7k/$8k contribution limit is combined across all Traditional + Roth IRAs.

Frequently Asked Questions

How is a traditional IRA taxed?

Contributions may be tax-deductible in the year they are made, and growth is untaxed until withdrawal. Withdrawals in retirement are then taxed as ordinary income.

How does it differ from a Roth IRA?

A traditional IRA defers tax to retirement; a Roth is funded with after-tax money and qualified withdrawals are tax-free. The traditional suits those expecting a lower future tax rate.

What are required minimum distributions?

From a set age, the IRS requires minimum annual withdrawals from a traditional IRA. They are taxed as income and do not apply to a Roth IRA during the owner's life.

Is there a contribution limit?

Yes. The IRS sets an annual IRA contribution limit, with a higher cap for those 50 and older. Keep your monthly contribution within one-twelfth of the limit.

Are the projected figures before tax?

Yes. The balance is pre-tax. Because withdrawals are taxed as income, the spendable amount in retirement is lower than the projected balance.

References & Authoritative Sources

Related Calculators

Data Sources & Benchmarks

This calculator draws on 3 independent, dated sources. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.

10.30% Provisional
S&P 500 long-run annual return
S&P 500 Index — Long-Run Annualized Total Return
S&P Dow Jones Indices · as of December 31, 2025
View source ↗
4.31% Provisional
10-year U.S. Treasury yield
Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity (DGS10)
Board of Governors of the Federal Reserve System (FRED) · as of May 15, 2026
View source ↗
3.10% Provisional
U.S. inflation, 12-month change
Consumer Price Index for All Urban Consumers — All Items, 12-Month Change
U.S. Bureau of Labor Statistics · as of April 30, 2026
View source ↗

Methodology & Review

Ugo Candido ✓ Editor
Founder & Editor-in-Chief at CalcDomain — responsible for the methodology, sourcing, and technical review of this calculator.

The projection compounds the balance monthly at a constant expected return and adds a fixed monthly contribution. It assumes contributions stay within annual IRS limits and excludes fees and future tax.

Updated