IRA Calculator

Our IRA calculator lets you assess and contrast Traditional, SEP, SIMPLE, Roth IRAs, as well as ordinary taxable savings. For side‑by‑side analysis, Roth IRAs and taxable accounts are shown after taxes. To run a Roth scenario with after‑tax numbers, head over to our Roth IRA Calculator. The tool is designed primarily for U.S. residents.

Annual Schedule

	Traditional/SIMPLE/SEP IRA (Before Tax)		Traditional, SIMPLE, or SEP IRA (After Tax)		Roth IRA (After Tax)		Regular Taxable Savings (After Tax)
Age	Start	End	Start	End	Start	End	Start	End
30	$30,000	$39,300	$25,500	$33,405	$22,500	$29,475	$22,500	$29,138
31	$39,300	$49,158	$33,405	$41,784	$29,475	$36,869	$29,138	$36,074
32	$49,158	$59,607	$41,784	$50,666	$36,869	$44,706	$36,074	$43,322
33	$59,607	$70,684	$50,666	$60,081	$44,706	$53,013	$43,322	$50,896
34	$70,684	$82,425	$60,081	$70,061	$53,013	$61,819	$50,896	$58,812
35	$82,425	$94,870	$70,061	$80,640	$61,819	$71,153	$58,812	$67,083
36	$94,870	$108,063	$80,640	$91,853	$71,153	$81,047	$67,083	$75,727
37	$108,063	$122,046	$91,853	$103,739	$81,047	$91,535	$75,727	$84,760
38	$122,046	$136,869	$103,739	$116,339	$91,535	$102,652	$84,760	$94,199
39	$136,869	$152,581	$116,339	$129,694	$102,652	$114,436	$94,199	$104,063
40	$152,581	$169,236	$129,694	$143,851	$114,436	$126,927	$104,063	$114,371
41	$169,236	$186,890	$143,851	$158,857	$126,927	$140,168	$114,371	$125,143
42	$186,890	$205,604	$158,857	$174,763	$140,168	$154,203	$125,143	$136,399
43	$205,604	$225,440	$174,763	$191,624	$154,203	$169,080	$136,399	$148,162
44	$225,440	$246,467	$191,624	$209,497	$169,080	$184,850	$148,162	$160,454
45	$246,467	$268,755	$209,497	$228,441	$184,850	$201,566	$160,454	$173,300
46	$268,755	$292,380	$228,441	$248,523	$201,566	$219,285	$173,300	$186,723
47	$292,380	$317,423	$248,523	$269,809	$219,285	$238,067	$186,723	$200,751
48	$317,423	$343,968	$269,809	$292,373	$238,067	$257,976	$200,751	$215,409
49	$343,968	$372,106	$292,373	$316,290	$257,976	$279,079	$215,409	$230,728
50	$372,106	$401,932	$316,290	$341,643	$279,079	$301,449	$230,728	$246,736
51	$401,932	$433,548	$341,643	$368,516	$301,449	$325,161	$246,736	$263,464
52	$433,548	$467,061	$368,516	$397,002	$325,161	$350,296	$263,464	$280,945
53	$467,061	$502,585	$397,002	$427,197	$350,296	$376,939	$280,945	$299,212
54	$502,585	$540,240	$427,197	$459,204	$376,939	$405,180	$299,212	$318,302
55	$540,240	$580,154	$459,204	$493,131	$405,180	$435,116	$318,302	$338,250
56	$580,154	$622,464	$493,131	$529,094	$435,116	$466,848	$338,250	$359,096
57	$622,464	$667,311	$529,094	$567,215	$466,848	$500,484	$359,096	$380,881
58	$667,311	$714,850	$567,215	$607,623	$500,484	$536,138	$380,881	$403,645
59	$714,850	$765,241	$607,623	$650,455	$536,138	$573,931	$403,645	$427,434
60	$765,241	$818,656	$650,455	$695,857	$573,931	$613,992	$427,434	$452,294
61	$818,656	$875,275	$695,857	$743,984	$613,992	$656,456	$452,294	$478,272
62	$875,275	$935,291	$743,984	$794,998	$656,456	$701,469	$478,272	$505,419
63	$935,291	$998,909	$794,998	$849,073	$701,469	$749,182	$505,419	$533,788
64	$998,909	$1,066,343	$849,073	$906,392	$749,182	$799,758	$533,788	$563,434

Related

Retirement Calculator | Roth IRA Calculator | Annuity Payout Calculator

In the United States, an IRA (individual retirement account) is a type of retirement plan with taxation benefits defined by IRS Publication 590. It is a government tax break to incentivize people to invest money for retirement.

The two most widely used retirement accounts are traditional and Roth IRAs. Contributions to a Roth are made with after‑tax dollars and qualified withdrawals are tax‑free, while traditional contributions are tax‑deductible and taxed when taken out. Most retirees expect a lower income – and thus a lower marginal tax rate – than during their working years, making the traditional model attractive because taxes are deferred until retirement. Both account types typically grow faster than regular taxable accounts thanks to the tax shelter. SEP IRAs are favored by self‑employed individuals with a small staff, and SIMPLE IRAs cater to businesses that employ fewer than 100 people.

Traditional IRA

Traditional IRAs are a common qualified retirement vehicle that offers tax‑shield benefits on the money set aside for later years. They suit savers who wish to lower their current tax bill while building a nest‑egg.

Taxes are applied only when you take distributions, either before retirement or after. Early withdrawals generally incur a penalty unless an exception applies. Most contributors can deduct their payments provided they meet income and filing‑status limits. After reaching age 59½, distributions are penalty‑free, and mandatory required minimum distributions begin at age 73. The majority of individuals qualify for a traditional IRA.

Roth IRA

Roth IRAs are funded with after‑tax money, so earnings grow without tax and qualified withdrawals are tax‑free. Once you hit 59½, you can take money out without penalty, and there is no requirement to begin distributions while you’re alive. This allows the account to compound tax‑free for the rest of your life. For deeper details and calculations, visit our Roth IRA Calculator.

SEP IRA

SEP (Simplified Employee Pension) IRAs are employer‑sponsored plans that let businesses contribute to employees’ retirement accounts. They are popular with small firms and self‑employed professionals because they’re easier to establish than other IRA types. Tax treatment, growth and distribution rules mirror those of traditional IRAs, and employer contributions are deductible as a business expense. For 2026 the contribution ceiling is the lesser of 25 % of compensation or $72,000 – roughly ten times the limit of typical traditional or Roth IRAs. All contributions vest immediately, there is no catch‑up provision for those 50+, and every eligible employee must receive the same benefit.

SIMPLE IRA

SIMPLE IRAs are intended for employers with 100 or fewer staff, offering lower administrative costs compared with 401(k) plans. Employers can also write off their contributions. Companies must choose one of two matching formulas: either match employee contributions up to 3 % of salary, or contribute a flat 2 % of each employee’s compensation regardless of participation. In 2026 the annual limit is $17,000 (plus $4,000 catch‑up for those 50+, or $5,250 for participants aged 60‑63), or up to 100 % of compensation. Employees may therefore allocate their entire earnings to a SIMPLE IRA, but total contributions across all employer‑sponsored plans cannot exceed $24,500 for workers under 50, $32,500 for ages 50‑59 or 64+, and $35,750 for ages 60‑63.

It is important to note that the early withdrawal penalty is 25% for SIMPLE IRAs, which is much higher than the 10% of traditional or Roth IRAs. SIMPLE IRAs can only be cashed out without penalty after two years.

IRA Rollovers

You can roll over qualified plans such as 401(k), 403(b), SIMPLE, or SEP IRAs into a traditional IRA, and even 457 or inherited employer plans are eligible. Direct rollovers do not trigger immediate taxation, though you must still report them on your tax return using Form 1099‑R for the distribution and Form 5498 for the rollover contribution. Generally, the investment options you have remain similar after a rollover. You may combine rollover funds with new contributions in the same IRA, but keep traditional and Roth balances separate.

Leaving the money in a former employer’s plan is another option, provided the plan’s balance meets any minimum‑value rules. You can also transfer assets to a new employer’s retirement program. Cashing out is possible but typically incurs a 10 % early‑withdrawal penalty plus ordinary income tax on the distribution.

Comparison to 401(k)s

Traditional IRA

Traditional IRAs and 401(k)s are among the most common tax‑deferred, defined‑contribution retirement accounts. Both let you contribute pre‑tax earnings, which then grow tax‑sheltered until retirement, at which point distributions are taxed—often at a lower rate for retirees. In 2026 you may contribute up to $24,500 to a 401(k) and $7,500 to a traditional IRA (or $8,600 if you’re 50 or older), subject to income limits that restrict high‑earners from making traditional IRA contributions. While the two plans share many features, key differences exist.

Traditional IRAs can be opened directly at most banks or brokerages, whereas 401(k) plans are set up by employers and only become available when a company meets specific criteria and decides to sponsor one. The chief distinction lies in contribution caps: 401(k)s allow larger annual deposits and often include an employer match. In practice, many firms will match a portion of an employee’s contribution, so it makes sense to first contribute enough to capture the full match. After securing the match, you can either keep adding to the 401(k) up to its yearly limit or divert funds to other retirement accounts. Compared with the relatively narrow menu of investment choices and higher administrative costs of most 401(k)s, traditional IRAs give you a virtually unrestricted selection of assets.

SEP and SIMPLE IRA

Traditional IRAs do not feature any employer‑matching component, unlike 401(k)s, but both SEP and SIMPLE IRAs incorporate a form of matching, albeit structured differently. These matching provisions are tailored for smaller businesses that lack the scale to support a full 401(k) offering.

Investments Options in an IRA

Because IRAs are offered by virtually every brokerage and bank, investors enjoy a broad spectrum of investment vehicles. Below is a snapshot of common options together with their typical pros and cons.

Active Investing in Individual Stocks or Similar Assets

Active investing demands a hands‑on strategy: investors must research individual securities, monitor market movements, and make frequent allocation decisions. While this approach can potentially deliver higher returns, it also carries considerable risk and is generally unsuitable for those just starting out.

Mutual or Index Funds

A mutual fund aggregates capital from individual savers, corporations, and other entities, which a professional manager then invests according to a defined strategy. Different funds pursue varied tactics, so each investor needs to identify the fund whose objectives align with their own goals.

Both mutual and index funds provide a more passive investing experience. They are typically held for the long haul, which helps lower transaction costs compared with frequent trading. Passive funds generally require less hands‑on management and can be less stressful for investors. Management fees, however, do vary widely—from under a tenth of a percent to several percent—depending on the fund. For many IRA owners, these funds remain the go‑to choice.

Robo-Advisors

Robo‑advisors are digital platforms that use algorithms to construct and oversee investment portfolios at low cost. They can generate a diversified, personalized mix of assets in minutes, and most allow you to rebalance automatically or manually based on your preferences.

Others

It is possible to have IRA funds invested in precious metals, annuities, land, real estate investment trusts (REITs), or Certificates of Deposit (CDs). It is up to each person to decide which of the aforementioned options is right for them.

Self-Directed IRA

A self‑directed IRA (SD‑IRA) can replace a traditional or Roth IRA (excluding SEP and SIMPLE versions) while preserving the same eligibility rules, contribution limits, and distribution requirements. SD‑IRAs are estimated to account for roughly two percent of all IRA holdings.

Whereas holders of traditional or Roth IRAs typically select stocks or mutual funds, an SD‑IRA owner must locate the underlying assets themselves. The IRS permits a wide array of investment types—often those that are not allowed in conventional IRAs—making SD‑IRAs attractive to investors seeking niche or alternative assets such as:

• Privately-held companies
• Hedge funds
• Investment real estate
• Limited partnerships
• Crowdfunding
• Tax liens
• Bitcoin and other digital currencies
• A friend's farm

Starting a self‑directed IRA is more complex than setting up a standard traditional or Roth IRA. Although most banks and brokerages offer the latter, self‑directed accounts are usually found at niche, boutique firms. Keep in mind that the IRS closely monitors SD‑IRA activity.

Consequently, self‑directed IRAs are best suited for seasoned investors or individuals prepared to collaborate with a qualified advisor. Note that certain assets are prohibited in every type of IRA, self‑directed included. Examples are:

• Life insurance
• S corporations
• Antiques or collectibles
• Art
• Personal real estate used as a residence or for rental income
• Certain derivative positions

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