Saving for your future
See what steady contributions become over a working career, and what they pay you back in retirement.
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Benefits of a Traditional IRA
A traditional IRA lets you deduct contributions from taxable income now and pay tax on withdrawals later. For savers who expect a lower tax rate in retirement than during peak earning years, that trade can work in your favor. The calculator below shows how a set annual contribution compounds over your years of saving, what the balance looks like at retirement, and what you'd take home after tax on each withdrawal.
How to use the calculator
Enter four inputs:
Tax bracket during contribution years. The federal marginal rate that applies to your current income. If you're not sure, the IRS publishes brackets by filing status.
Annual contribution. What you plan to put in each year. For 2026, the IRS limit is $7,500 if you're under 50 and $8,600 if you're 50 or older.
Years of contribution. The number of years between now and your planned retirement date.
Expected rate of return. A reasonable long-term average for the mix of investments you hold inside the IRA.
The output shows the projected account balance at retirement, an estimated annual withdrawal, tax owed on that withdrawal, and the after-tax amount you'd keep.
What a traditional IRA does
Contributions reduce your taxable income in the year you make them, up to IRS limits and subject to income-based deduction rules if you or a spouse are covered by a workplace plan. Investments grow tax-deferred inside the account. Withdrawals in retirement are taxed as ordinary income. Distributions taken before age 59½ generally carry a 10% federal penalty on top of income tax, with a short list of exceptions. Required minimum distributions begin at age 73.
When a traditional IRA fits
A traditional IRA tends to favor savers whose marginal tax rate today is higher than what they expect to face in retirement. The deduction is worth more when income is high, and the tax on withdrawal is lighter when income drops. Roth IRAs work the other way: no deduction now, no tax later. If you want to compare, use the Roth IRA calculator.
Talk to an advisor
The calculator is a planning tool, not a recommendation. Contribution deductibility, Roth conversion strategy, coordination with a workplace plan, and the sequence of withdrawals in retirement all depend on your full picture. An Arrowroot Wealth Advisor can walk through the numbers with you.
Disclosure
This calculator is provided for educational purposes only and produces hypothetical illustrations based solely on the inputs and assumptions you enter. Results are not a guarantee, projection, or prediction of actual investment performance, and actual results will vary. The calculator does not reflect advisory fees, investment expenses, or every factor relevant to your situation. Contribution limits, income phaseouts, deduction rules, and tax rates are subject to change. This is not tax, investment, or legal advice. Consult your advisor and tax professional before acting.
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