A worked example
Starting with $15,000 at age 30 and contributing the full $7,000 a year at a 7% annual return projects to roughly $1.22 million by age 65 — the same growth math as a Roth, but this balance will owe ordinary income tax as it's withdrawn in retirement, rather than coming out tax-free.
Frequently asked questions
What's the 2026 Traditional IRA contribution limit?
$7,500 for those under 50, or $8,600 including the $1,100 catch-up for those 50 and over — the same combined limit that applies across all your traditional and Roth IRAs together.
Are Traditional IRA contributions always tax-deductible?
Not always. If you (or your spouse) have access to a workplace retirement plan, the deduction phases out at higher income levels. Without workplace plan access, contributions are generally fully deductible regardless of income.
How is this different from a 401(k)?
A 401(k) is employer-sponsored with a much higher contribution limit and is set up through your job. An IRA is opened independently with any broker, has a lower contribution limit, but usually offers a far wider choice of investments.
What happens when I withdraw from a Traditional IRA in retirement?
Withdrawals are taxed as ordinary income, since the contributions (if deducted) and growth were never taxed along the way. Required minimum distributions also apply starting at age 73 or 75, depending on birth year.
This calculator provides estimates for general informational purposes only and is not tax or financial advice. Contribution limits and deduction rules reflect 2026 IRS figures and change over time. Actual investment returns are not guaranteed.