IRA Calculator - Calculate Retirement Savings Growth
Free IRA calculator to determine future retirement savings value, total contributions, and potential retirement income from Traditional and Roth IRA investments
IRA Retirement Calculator
Retirement Results
What is an IRA Calculator?
An IRA calculator is a free financial tool that helps you project the future value of your Individual Retirement Account based on current savings, annual contributions, and expected investment returns.
This calculator helps with:
- Retirement planning - Determine if you're saving enough for retirement
- Contribution optimization - Find the ideal annual contribution amount
- Investment strategy - Compare Traditional vs Roth IRA benefits
- Goal setting - Set realistic retirement savings targets
- Income projection - Estimate retirement income from IRA savings
Types of IRAs
Choose the IRA type that best fits your financial situation:
Traditional IRA
Tax-deductible contributions, taxed withdrawals in retirement.
Roth IRA
After-tax contributions, tax-free qualified withdrawals.
IRA Contribution Limits & Rules
2024 Contribution Limits
$7,000 annual limit ($8,000 if age 50+). Contributions must be made by tax filing deadline.
Income Limits
Roth IRA contributions phase out at higher income levels. Traditional IRA deductibility depends on income and workplace retirement plan participation.
How to Use This IRA Calculator
Enter Current Age
Input your current age (e.g., 30)
Enter Retirement Age
Input desired retirement age (e.g., 65)
Current IRA Balance
Enter existing IRA balance if any (e.g., $10,000)
Annual Contribution
Enter planned yearly contribution (e.g., $7,000)
Expected Return Rate
Input expected annual return (e.g., 7.0%)
Select IRA Type
Choose Traditional or Roth IRA
Benefits of Using This Calculator
- •Retirement Readiness: Determine if your current savings plan will meet your retirement goals.
- •Contribution Planning: Find the optimal annual contribution amount for your retirement timeline.
- •Investment Strategy: Compare different return scenarios and IRA types for better decision making.
- •Income Projection: Estimate potential retirement income using the 4% safe withdrawal rule.
- •Goal Setting: Set realistic retirement savings targets based on compound interest calculations.
Factors That Affect Your IRA Growth
1. Time Horizon
Longer time until retirement allows more compound growth. Starting early has exponential benefits.
2. Contribution Amount
Higher annual contributions significantly increase final portfolio value through compound interest.
3. Investment Returns
Higher average returns dramatically increase final value. Even 1-2% difference compounds significantly.
4. Consistency
Regular annual contributions are more effective than sporadic large contributions due to compound interest.
Frequently Asked Questions
Common questions about IRA planning and retirement savings
What's the difference between Traditional and Roth IRA?
Traditional IRA contributions are tax-deductible now but withdrawals are taxed in retirement. Roth IRA contributions are made with after-tax dollars but qualified withdrawals are tax-free. Choose based on your current vs expected future tax situation.
How much should I contribute to my IRA annually?
The maximum annual contribution for 2024 is $7,000 ($8,000 if age 50+). Contribute as much as you can afford while prioritizing high-interest debt payoff and emergency fund building. Even small regular contributions compound significantly over time.
What investment returns should I expect from my IRA?
Historical stock market returns average 7-10% annually over long periods. A balanced portfolio of 60% stocks and 40% bonds might return 6-8%. Consider your risk tolerance and investment timeline when setting return expectations.
When should I start withdrawing from my IRA?
You must start Required Minimum Distributions (RMDs) from Traditional IRAs by age 73. Roth IRAs have no RMDs during your lifetime. Plan withdrawals based on your overall retirement income needs and tax situation.
Can I contribute to both Traditional and Roth IRA?
Yes, you can contribute to both types in the same year, but total contributions cannot exceed the annual limit ($7,000 in 2024). This allows you to diversify your tax strategy between current deductions and future tax-free growth.
How does the 4% rule work for retirement income?
The 4% rule suggests withdrawing 4% of your portfolio value in the first year of retirement, then adjusting for inflation annually. This approach has historically provided sustainable income for 30+ years based on historical market performance.
What happens if I withdraw early from my IRA?
Early withdrawals (before age 59½) from Traditional IRAs are subject to income tax plus 10% penalty. Roth IRAs allow tax-free, penalty-free withdrawal of contributions anytime. There are some exceptions for qualified early withdrawals.
Should I prioritize 401(k) or IRA contributions?
Maximize any employer 401(k) match first (it's free money), then contribute to IRA for additional tax advantages. If your 401(k) fees are high or investment options limited, IRA might be preferable after getting the match.