IRA Calculator

A Traditional IRA is an individual retirement account you open yourself, outside of any employer. Contributions may be tax-deductible depending on your income and whether you have a retirement plan at work, and the money grows tax-deferred until you withdraw it in retirement, when withdrawals are taxed as ordinary income. Anyone with earned income can contribute at any age. It pairs naturally with a 401(k) or works as your primary account if your job offers no plan.

The 2026 IRA contribution limit is $7,500, up from $7,000 in 2025. If you are 50 or older, a $1,100 catch-up raises your limit to $8,600. The limit is shared across all your IRAs: contributions to a Traditional IRA and a Roth IRA in the same year count against one combined cap. You also cannot contribute more than your earned income for the year (IRS: IRA contribution limits).

It depends on two things: your income and whether you (or your spouse) are covered by a retirement plan at work. If neither of you is covered, the full contribution is deductible at any income. If you are covered, the deduction phases out between $81,000 and $91,000 of MAGI for single filers and between $129,000 and $149,000 for married filing jointly in 2026. If only your spouse is covered, your own range is much higher: $242,000 to $252,000. Use the Deductibility tab above to check your exact number (IRS: IRA deduction limits).

You can still contribute; you just don't get the deduction. Nondeductible contributions go in after-tax and you report them on Form 8606 so you aren't taxed twice on that money later. Before settling for a nondeductible Traditional IRA, though, check whether a Roth IRA serves you better: if your income allows Roth contributions, tax-free growth usually beats tax-deferred growth on after-tax money. High earners above both limits often use the backdoor Roth strategy instead.

The core question is whether your tax rate is higher now or will be higher in retirement. A Traditional IRA wins when you deduct at a high rate today and withdraw at a lower rate later. A Roth IRA wins when your rate today is lower than what you expect in retirement, and it adds two structural advantages: no required minimum distributions and tax-free withdrawals. The IRA vs Roth tab above runs the math side by side. Our Roth IRA calculator covers the Roth side in more depth.

Traditional IRA owners must start taking required minimum distributions at age 73. The amount each year is your prior year-end balance divided by an IRS life-expectancy factor (26.5 in the first year), so roughly 3.8% of the account to start, rising as you age. RMDs are taxed as ordinary income, and missing one triggers a penalty of up to 25% of the shortfall. Roth IRAs have no RMDs during the owner's lifetime (IRS: RMD FAQs).

Yes. The IRA limit ($7,500, or $8,600 at 50+) and the 401(k) elective-deferral limit ($24,500 in 2026) are completely separate, so you can max both. The catch: once you are covered by the 401(k), your IRA deduction becomes subject to the income phase-out. Many savers follow this order: contribute to the 401(k) up to the full employer match, then fund an IRA for its flexibility and investment choice, then return to the 401(k).

Yes. A spousal IRA lets a working spouse fund an IRA for a non-working or low-earning spouse, as long as you file jointly and your combined earned income covers both contributions. Each spouse owns their account individually, and each gets the full limit: up to $17,200 combined in 2026 if both are 50 or older. Deductibility for each spouse follows the same income rules, based on which of you is covered by a workplace plan.