Traditional IRA Calculator
This Traditional IRA calculator evaluates your deductibility status and projects your retirement balance and after-tax value. Enter your age, filing status, MAGI and whether you are covered by a workplace retirement plan (such as a 401(k), 403(b) or pension). The calculator determines how much of your annual contribution is deductible. If you are not covered by a workplace plan, the full contribution is deductible regardless of income. If you are covered, deductibility phases out at higher MAGI levels: $79,000 to $89,000 for single filers, and $126,000 to $146,000 for married filing jointly (both per IRS Rev Proc 2024-40). Non-deductible contributions are allowed but must be tracked using IRS Form 8606 to avoid double taxation on withdrawal. The calculator projects your pre-tax balance using your contributions, starting balance and expected return, then applies your estimated retirement tax rate to show the after-tax value available to spend. Results include deductibility status, the immediate tax saving from any deductible portion, projected pre-tax balance and estimated after-tax balance at retirement.
Contributing $7,000/year to a Traditional IRA at age 35, at 7%/year for 30 years, projects a pre-tax balance of -- and an estimated after-tax value of --.
How Traditional IRA deductibility is determined
The deductibility of a Traditional IRA contribution depends on whether you (or your spouse, if married filing jointly) are covered by a workplace retirement plan, and on your MAGI. The phase-out ranges are set annually by the IRS and published in the Revenue Procedure for that year. For 2025, the thresholds are in IRS Rev Proc 2024-40.
deductible fraction = max(0, 1 - (MAGI - phase_start) / (phase_end - phase_start))
deductible amount = round_up_10(full_contribution x deductible_fraction) [min $200 if partial]
tax saving = deductible_amount x current_marginal_rate
FV = current_balance x (1 + r)^n + contrib x ((1 + r)^n - 1) / r
after-tax FV = FV x (1 - retirement_tax_rate)
2025 deductibility phase-out ranges
| Situation | Phase-out starts | Phase-out ends |
|---|---|---|
| Single/HOH, covered by plan | $79,000 | $89,000 |
| MFJ, covered spouse | $126,000 | $146,000 |
| MFJ, not covered but spouse is | $236,000 | $246,000 |
| MFS, covered by plan | $0 | $10,000 |
| Not covered by any plan | Fully deductible (any income) | |
RMD reminder: Traditional IRAs are subject to Required Minimum Distributions (RMDs) starting at age 73 (or 75 for those born in 1960 or later) under the SECURE 2.0 Act. See our RMD calculator for estimates.
Traditional IRA vs Roth IRA: which wins?
If your current marginal tax rate equals your retirement marginal tax rate, a deductible Traditional IRA and a Roth IRA deliver the same after-tax result in a simplified model (the math is symmetric). In practice, the Traditional IRA is better if your tax rate falls in retirement; the Roth wins if your tax rate rises. Several factors complicate the comparison:
- Traditional IRA RMDs can push retirees into higher brackets and increase Social Security taxation.
- Roth IRAs have no RMDs, making them better for estate planning.
- Medicare premium surcharges (IRMAA) are triggered by MAGI, which includes Traditional IRA distributions.
- Non-deductible Traditional IRA contributions create basis tracking requirements (Form 8606) and offer fewer advantages than a Roth.
Use our Roth conversion calculator to model converting existing Traditional IRA balances to Roth.
Traditional IRA calculator: frequently asked questions
When is a Traditional IRA contribution deductible?
A Traditional IRA contribution is fully deductible if neither you nor your spouse is covered by a workplace retirement plan (such as a 401(k) or 403(b)), regardless of income. If you are covered by a workplace plan, deductibility phases out at higher incomes. For 2025, the phase-out for single filers covered by a plan is $79,000 to $89,000 MAGI. For married filing jointly, the phase-out for the covered spouse is $126,000 to $146,000. Source: IRS Rev Proc 2024-40.
What if I am not covered by a workplace retirement plan?
If you are not covered by a workplace plan and your spouse is also not covered, your Traditional IRA contribution is fully deductible at any income level. If you are not covered but your spouse is covered by a workplace plan, the deductibility of your contribution phases out between $236,000 and $246,000 MAGI for 2025. Source: IRS Rev Proc 2024-40.
What is a non-deductible Traditional IRA contribution?
If your income exceeds the deductibility threshold (or you choose not to deduct), you can still contribute to a Traditional IRA on a non-deductible basis. You get no current tax break, but the earnings grow tax-deferred. You must track your non-deductible contributions on IRS Form 8606 so that when you withdraw, you are not taxed again on the after-tax basis you already contributed.
What is IRS Form 8606?
Form 8606 is used to report non-deductible IRA contributions and to track your cost basis in Traditional, SEP, and SIMPLE IRAs. If you have made non-deductible contributions and do not file Form 8606, you risk being taxed again on your basis when you withdraw. The form is also required for Roth conversions and certain distributions from IRAs that contain non-deductible contributions.
When must I take Required Minimum Distributions from a Traditional IRA?
Under the SECURE 2.0 Act, you must begin taking RMDs from your Traditional IRA by April 1 of the year following the year you turn 73 (if you were born between 1951 and 1959) or age 75 (if born 1960 or later). RMDs are calculated based on your account balance and your life expectancy factor from the IRS Uniform Lifetime Table. Failure to take an RMD results in an excise tax of 25% of the shortfall (reduced to 10% if corrected within two years). Source: IRS Publication 590-B.
What is the 10% early withdrawal penalty?
Distributions from a Traditional IRA before age 59-and-a-half are generally subject to a 10% early withdrawal penalty in addition to ordinary income tax on the full amount. There are exceptions, including disability, death, certain medical expenses, health insurance premiums while unemployed, first-time home purchase (up to $10,000 lifetime), higher education expenses, and substantially equal periodic payments under IRC Section 72(t). Source: IRS Publication 590-B.
Official sources
- 2025 IRA limits and phase-out amounts: IRS Rev Proc 2024-40.
- IRA contribution and deductibility rules: IRS Publication 590-A, Contributions to Individual Retirement Arrangements.
- IRA distribution rules and RMDs: IRS Publication 590-B, Distributions from Individual Retirement Arrangements.
- Non-deductible IRA tracking: IRS Form 8606, Nondeductible IRAs.
Reviewed by the CalculatorHub team, edited by James Graham, 13 June 2026. See our methodology. General information only, not financial or tax advice.