IRA Calculator
Calculate Traditional and Roth IRA growth and compare tax benefits.
IRA Growth Calculator
About IRAs
Individual Retirement Accounts (IRAs) are tax-advantaged retirement savings accounts. They come in two main types: Traditional and Roth, each with different tax benefits.
Traditional IRA
- Tax Deduction: Contributions may be tax-deductible
- Tax-Deferred Growth: No taxes on gains until withdrawal
- Required Distributions: Must start at age 73
- Withdrawal Taxes: Pay ordinary income tax on withdrawals
Roth IRA
- After-Tax Contributions: No current tax deduction
- Tax-Free Growth: No taxes on investment gains
- No RMDs: No required minimum distributions
- Tax-Free Withdrawals: No taxes in retirement
Contribution Limits (2024)
- Under 50: $7,000 combined Traditional + Roth
- 50 and older: $8,000 (includes $1,000 catch-up)
- Income limits apply for deductibility and Roth eligibility
- Contribution deadline is tax filing deadline (April 15)
Which IRA to Choose?
- Traditional: If you need current tax deduction
- Traditional: If you expect lower tax rates in retirement
- Roth: If you expect higher tax rates in retirement
- Roth: If you want tax-free inheritance for heirs
IRA Investment Options
- Stocks, bonds, and mutual funds
- Exchange-traded funds (ETFs)
- Certificates of deposit
- Real estate investment trusts (REITs)
- Target-date funds for automatic diversification