IRA Calculator

This is a calculator for calculating and comparing Traditional IRA, SEP IRA, SIMPLE IRA, Roth IRA, and regular taxable saving. The Traditional IRA, SEP IRA, SIMPLE, and Rollover IRA are the same in tax treatment and balance accumulation. They are different in the sources of funding and contribution limits only. The balance and annual contribution inputs below are pre-tax values. For comparison purpose, they will be converted to after-tax values for Roth IRA and regular taxable savings. If you want to calculate Roth IRA with after-tax inputs, please use our Roth IRA Calculator.

Current Balance$ 
Annual Contribution$ 
Investment Return%
Current Age 
Retirement Age 
Marginal Tax
Rate Now
%
Marginal Tax Rate
After Retirement
%
Inflation Rate%
 

Result

 Traditional,
SIMPLE,
or SEP IRA
Roth IRARegular Taxable Savings
Balance at Age 65$766,613.03$574,959.77$406,183.77
Balance at Age 65 (After Tax)$651,621.07$574,959.77$406,183.77
Equivalent Today's Purchasing Power$231,575.31$204,331.16$144,350.97

A Traditional, SIMPLE, or SEP IRA account can accumulate $76,661.30 more after tax balance than a Roth IRA account at age 65. A Roth IRA account can accumulate $168,776.00 more than a regular taxable savings account.

Balance Accumulation Graph

Annual Schedule

 Traditional/SIMPLE/SEP IRA (Before Tax)Traditional, SIMPLE, or SEP IRA (After Tax)Roth IRA (After Tax)Regular Taxable Savings (After Tax)
AgeStartEndStartEndStartEndStartEnd
30$20,000.00$26,700.00$17,000.00$22,695.00$15,000.00$20,025.00$15,000.00$19,800.00
31$26,700.00$33,802.00$22,695.00$28,731.70$20,025.00$25,351.50$19,800.00$24,816.00
32$33,802.00$41,330.12$28,731.70$35,130.60$25,351.50$30,997.59$24,816.00$30,057.72
33$41,330.12$49,309.93$35,130.60$41,913.44$30,997.59$36,982.45$30,057.72$35,535.32
34$49,309.93$57,768.52$41,913.44$49,103.24$36,982.45$43,326.39$35,535.32$41,259.41
35$57,768.52$66,734.63$49,103.24$56,724.44$43,326.39$50,050.98$41,259.41$47,241.08
36$66,734.63$76,238.71$56,724.44$64,802.91$50,050.98$57,179.03$47,241.08$53,491.93
37$76,238.71$86,313.03$64,802.91$73,366.08$57,179.03$64,734.78$53,491.93$60,024.07
38$86,313.03$96,991.82$73,366.08$82,443.04$64,734.78$72,743.86$60,024.07$66,850.15
39$96,991.82$108,311.33$82,443.04$92,064.63$72,743.86$81,233.49$66,850.15$73,983.40
40$108,311.33$120,310.01$92,064.63$102,263.50$81,233.49$90,232.50$73,983.40$81,437.66
41$120,310.01$133,028.61$102,263.50$113,074.32$90,232.50$99,771.45$81,437.66$89,227.35
42$133,028.61$146,510.32$113,074.32$124,533.77$99,771.45$109,882.74$89,227.35$97,367.58
43$146,510.32$160,800.94$124,533.77$136,680.80$109,882.74$120,600.71$97,367.58$105,874.12
44$160,800.94$175,949.00$136,680.80$149,556.65$120,600.71$131,961.75$105,874.12$114,763.46
45$175,949.00$192,005.94$149,556.65$163,205.05$131,961.75$144,004.45$114,763.46$124,052.82
46$192,005.94$209,026.29$163,205.05$177,672.35$144,004.45$156,769.72$124,052.82$133,760.19
47$209,026.29$227,067.87$177,672.35$193,007.69$156,769.72$170,300.90$133,760.19$143,904.40
48$227,067.87$246,191.94$193,007.69$209,263.15$170,300.90$184,643.96$143,904.40$154,505.10
49$246,191.94$266,463.46$209,263.15$226,493.94$184,643.96$199,847.60$154,505.10$165,582.83
50$266,463.46$287,951.27$226,493.94$244,758.58$199,847.60$215,963.45$165,582.83$177,159.06
51$287,951.27$310,728.34$244,758.58$264,119.09$215,963.45$233,046.26$177,159.06$189,256.21
52$310,728.34$334,872.05$264,119.09$284,641.24$233,046.26$251,154.03$189,256.21$201,897.74
53$334,872.05$360,464.37$284,641.24$306,394.71$251,154.03$270,348.28$201,897.74$215,108.14
54$360,464.37$387,592.23$306,394.71$329,453.40$270,348.28$290,694.17$215,108.14$228,913.01
55$387,592.23$416,347.76$329,453.40$353,895.60$290,694.17$312,260.82$228,913.01$243,339.09
56$416,347.76$446,828.63$353,895.60$379,804.34$312,260.82$335,121.47$243,339.09$258,414.35
57$446,828.63$479,138.35$379,804.34$407,267.60$335,121.47$359,353.76$258,414.35$274,168.00
58$479,138.35$513,386.65$407,267.60$436,378.65$359,353.76$385,039.99$274,168.00$290,630.56
59$513,386.65$549,689.85$436,378.65$467,236.37$385,039.99$412,267.39$290,630.56$307,833.93
60$549,689.85$588,171.24$467,236.37$499,945.55$412,267.39$441,128.43$307,833.93$325,811.46
61$588,171.24$628,961.51$499,945.55$534,617.29$441,128.43$471,721.13$325,811.46$344,597.98
62$628,961.51$672,199.20$534,617.29$571,369.32$471,721.13$504,149.40$344,597.98$364,229.89
63$672,199.20$718,031.16$571,369.32$610,326.48$504,149.40$538,523.37$364,229.89$384,745.23
64$718,031.16$766,613.03$610,326.48$651,621.07$538,523.37$574,959.77$384,745.23$406,183.77

RelatedRetirement 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. There are several types of IRAs:

Traditional IRA—Traditional IRA is often initiated and managed by individuals. The contributions are normally tax-deductible. The investment income/return of the Traditional IRA is tax-free until withdrawals at retirement. After turning age 59 1/2, you can withdrawal from Traditional IRA without any penalty. IRA withdrawal is not required until after age 70 1/2. After age 70 1/2, you are required to take minimum distributions (RMDs). The withdrawals are treated as income in taxation.

Roth IRA—Roth IRA is often initiated and managed by individuals. The contributions come from after-tax income or assets. The investment income/return of Roth IRA is tax-free and the withdrawals are usually tax-free. After turning age 59 1/2, you can withdrawal from Roth IRA without any penalty. However Roth IRA withdrawals are not mandatory during the owner's lifetime. So, Roth IRAs can grow tax-free throughout the owner's entire lifetime without distribution.

SEP IRA—SEP IRA is a way that employers make retirement plan contributions for employees. SEP IRA are the same in tax treatment, balance accumulation, and distribution as Traditional IRA. SEP IRA are mostly used by small businesses or self-employed individuals.

SIMPLE IRA—SIMPLE IRA is a Savings Incentive Match Plan for Employees that requires employer matching contributions to the plan whenever an employee makes a contribution. SIMPLE IRA is very similar to a 401(K) plan.

Rollover IRA—Rollover IRA are the same in tax treatment, balance accumulation, and distribution as Traditional IRA except the sources of fund. Funds from qualified plan, such as 401(K), 403(B), SIMPLE IRA, SEP IRA , etc can be "rolled over" and consolidated into a Rollover IRA account, mostly for easier management and sometime for better control.

Among the IRAs above, the most common are Traditional IRA and Roth IRA. The contributions to a Roth IRA are not tax deductible, yet the withdrawals after retirement are tax-free. On the opposite, the contributions to Traditional IRA are tax deductible, yet taxed on withdrawals after retirement. For most people, the expected marginal tax rate after retirement is lower. Therefore, Traditional IRA is better economically. Both Traditional IRA and Roth IRA can accumulate wealth better than regular taxable savings or investments due to the taxation benefits. Most people are qualified to contribute to both Traditional IRA and Roth IRA. If capable, it is economically wise to contribute to both. Otherwise, you can pick the better one based on the calculation results above.