IRA Calculator - Traditional IRA Calculator with Tax Benefits

IRA Contribution Details

Required Inputs

Current Age

Retirement Age

Annual Contribution

2025 limit: $7,000 ($8,000 if 50+)

Expected Annual Return (%)

Optional Inputs

Current IRA Balance

Current Tax Bracket (%) For calculating tax savings

Retirement Tax Bracket (%) Expected tax rate in retirement

📊 Monte Carlo Simulation

Enable probabilistic modeling (10,000 scenarios) Model market volatility to see range of possible IRA outcomes

IRA Projection

Balance at Retirement

Total Contributions

Investment Gains

Lifetime Tax Savings

After-Tax Value

Years to Retirement

Understanding Traditional IRAs

What is a Traditional IRA?

A Traditional IRA is an individual retirement account that allows tax-deductible contributions. Your money grows tax-deferred until you withdraw it in retirement, when it's taxed as ordinary income.

2025 Contribution Limits

Under 50: $7,000 per year

Age 50+: $8,000 per year (includes $1,000 catch-up)

Must have earned income to contribute

Contributions deductible if income below certain limits

Key Benefits

Tax deduction lowers your current taxable income

Tax-deferred growth - no taxes on gains until withdrawal

Wide investment options (stocks, bonds, mutual funds, ETFs)

Can contribute until tax filing deadline (usually April 15)

Important Rules

Required Minimum Distributions (RMDs) start at age 73

Early withdrawal penalty of 10% before age 59½ (plus taxes)

Withdrawals taxed as ordinary income in retirement

Deductibility may be limited if covered by workplace retirement plan

Traditional IRA Calculator

IRA Contribution Details

Required Inputs

Optional Inputs

📊 Monte Carlo Simulation

📊 Monte Carlo Simulation Parameters

IRA Projection

📊 Monte Carlo Analysis Results

🎯 Target Goal Analysis

📈 Probability Cone Visualization

📊 Distribution of Final Outcomes

📈 Percentile Data by Year

Understanding Traditional IRAs

What is a Traditional IRA?

2025 Contribution Limits

Key Benefits

Important Rules