🏦 IRA Calculator
Calculate IRA retirement savings
2024 limit: $7,000 (under 50), $8,000 (50+)
Conservative: 5-6%, Moderate: 7-8%, Aggressive: 9-10%
How to Use This Calculator
Enter Your Age and Retirement Age
Input your current age and target retirement age. This determines how many years you have to save in your IRA.
Enter Current Balance and Annual Contribution
Enter your current IRA balance (if any) and your annual contribution amount. The 2024 contribution limit is $7,000 ($8,000 if 50+).
Enter Expected Annual Return
Enter your expected annual return on investments (typically 6-8% for diversified portfolios). Conservative: 5-6%, Moderate: 7-8%, Aggressive: 9-10%.
Review IRA Growth Projection
See your projected IRA balance at retirement, total contributions, and investment earnings. Use this to plan your retirement savings strategy.
Formula
Future Value = Current Balance × (1 + r)^n + Contribution × [((1 + r)^n - 1) / r]
Where:
• Current Balance = Existing IRA balance
• Contribution = Annual contribution
• r = Annual return rate
• n = Number of years until retirement
Example Calculation:
If current balance $10,000, annual contribution $7,000, return 7%, 35 years:
• Current balance grows: $10,000 × (1.07)^35 = ~$106,765
• Contributions grow: $7,000 × [((1.07)^35 - 1) / 0.07] = ~$938,240
• Future value: ~$1,045,000
• Total contributed: ~$255,000
• Earnings: ~$790,000
About IRA Calculator
An IRA (Individual Retirement Account) calculator helps you project your retirement savings with regular contributions and compound interest. IRAs are tax-advantaged retirement accounts that allow you to save for retirement with either tax-deferred contributions (Traditional IRA) or tax-free withdrawals (Roth IRA). IRAs are personal retirement accounts that you open independently (not through an employer like 401k). This calculator shows you how your IRA balance will grow over time with regular contributions and investment returns.
When to Use This Calculator
- Retirement Planning: Plan for retirement savings with IRA
- Contribution Planning: Determine optimal contribution amount
- Goal Setting: Set retirement savings goals
- IRA Comparison: Compare Traditional vs. Roth IRA
Understanding IRAs
- Traditional IRA: Tax deduction now, pay taxes in retirement
- Roth IRA: No deduction now, tax-free withdrawals in retirement
- Contribution Limits: 2024 limit: $7,000 ($8,000 if 50+)
- Income Limits: Roth IRA has income limits for contributions
- Early Withdrawal: Penalties apply before age 59½
Why Use Our Calculator?
- ✅ Retirement Projection: See projected balance at retirement
- ✅ Contribution Analysis: Understand impact of contributions
- ✅ Goal Planning: Plan for retirement savings goals
- ✅ IRA Planning: Plan your IRA strategy
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is an IRA?
An IRA (Individual Retirement Account) is a tax-advantaged retirement account that allows you to save for retirement. There are two main types: Traditional IRA (tax deduction now, pay taxes in retirement) and Roth IRA (no deduction now, tax-free withdrawals in retirement). IRAs are personal accounts you open independently, unlike 401(k) plans which are employer-sponsored.
How much can I contribute to an IRA?
For 2024, the IRA contribution limit is $7,000 ($8,000 if you're 50 or older). This limit applies to the combined total of all your IRAs (Traditional and Roth). You can contribute to both types, but the total can't exceed the annual limit. Contribution limits are adjusted for inflation each year.
What's the difference between Traditional and Roth IRA?
Traditional IRA contributions are tax-deductible (reduce taxable income now) and withdrawals are taxed in retirement. Roth IRA contributions are made with after-tax dollars (no tax deduction now) but withdrawals are tax-free in retirement. Choose based on whether you expect to be in a higher or lower tax bracket in retirement. Roth IRAs also have income limits for contributions.
When can I withdraw from my IRA?
You can withdraw from Traditional IRAs penalty-free starting at age 59½. Withdrawals before 59½ are subject to a 10% penalty plus income taxes. Roth IRAs allow penalty-free withdrawals of contributions at any time, but earnings withdrawals are penalty-free after age 59½ and 5 years of account ownership. There are exceptions for first-time home purchases, education expenses, and certain hardships.