Traditional IRA Calculator

For 2026 you can contribute up to $7,500 if you are under age 50, or $8,600 if you are 50 or older (the $1,100 catch-up). The limit applies to your combined Traditional and Roth IRA contributions for the year, not to each account separately. Contributions for a tax year can be made up to the federal tax filing deadline of the following April, and you must have earned income at least equal to the amount you contribute.

It depends on your income and whether you (or your spouse) are covered by a workplace retirement plan. If neither spouse is covered at work, the full contribution is deductible at any income. If you are covered, the 2026 phase-out starts at $79,000 modified AGI for single filers and fully phases out at $89,000; for married filing jointly the range is $126,000 to $146,000. If only your spouse is covered, the phase-out is $236,000 to $246,000. Above the top of the range you can still contribute, but the deduction is zero (a non-deductible Traditional IRA).

The clean rule is to compare your marginal tax rate today against your expected rate in retirement. Traditional wins when your current bracket is higher than your retirement bracket, because you deduct contributions at a high rate and withdraw at a lower one. Roth wins when retirement income (and rates) will be higher, because you pay tax now at a lower rate in exchange for tax-free growth and withdrawals. If you cannot predict future rates, many savers split contributions to hedge both directions.

RMDs begin the year you turn 73 under SECURE 2.0, and the start age rises to 75 in 2033. Your first RMD has a one-time deadline of April 1 of the year after you turn 73; every later RMD must be taken by December 31. The amount is your prior year-end balance divided by an IRS life-expectancy factor (about 26.5 at age 73). Missing an RMD triggers a 25 percent excise tax on the shortfall, dropped to 10 percent if you fix it within the IRS correction window.

Early withdrawals owe ordinary income tax plus a 10 percent IRS penalty on the amount taken. Exceptions waive the 10 percent (but not the income tax) for qualified first-time home purchase up to $10,000, higher education expenses, total and permanent disability, certain medical expenses, substantially equal periodic payments under Section 72(t), and a few SECURE 2.0 hardship categories. Use those exceptions sparingly because pulling tax-advantaged money early also costs decades of compounding growth.