How much can I contribute to an IRA in 2026?

For 2026 the traditional and Roth IRA limit is $7,500, or $8,600 if you are 50 or older. SEP IRAs allow the lesser of 25% of compensation or $72,000, and SIMPLE IRAs allow $17,000 plus a $4,000 catch-up at 50 or older ($5,250 for ages 60 to 63).

Is a traditional IRA better than a Roth IRA?

It comes down to tax rates. If your tax rate in retirement will be lower than it is today, the traditional IRA wins because you deduct at the high rate and withdraw at the low one. If you expect a higher rate later, the Roth wins. When the two rates are equal, the after-tax results are identical.

Why does the regular taxable account fall so far behind?

Interest, dividends, and realized gains get taxed every year, so the money that would have compounded goes to the IRS instead. At a 6% return and a 25% tax rate, the taxable account effectively grows at 4.5%, and over 35 years that gap compounds into hundreds of thousands of dollars.

What happens if I withdraw money early?

Withdrawals before age 59 1/2 usually trigger a 10% penalty on top of ordinary income tax, with a short list of qualified exceptions. SIMPLE IRAs are harsher: the penalty is 25% if you withdraw within the first two years.

When do I have to start taking money out?

Traditional, SEP, and SIMPLE IRAs require minimum distributions (RMDs) starting after age 73. Roth IRAs have no RMDs during the original owner's lifetime, so the balance can keep growing tax-free.

Can I contribute to both a 401(k) and an IRA in the same year?

Yes. In 2026 you can put up to $24,500 into a 401(k) and up to $7,500 ($8,600 if 50 or older) into an IRA. Very high earners may lose the traditional IRA deduction or the ability to contribute directly to a Roth.

IRA Calculator | Inches Calculator

Balance Accumulation Graph

Growth from age 30 to 65 on a $30,000 starting balance, $7,500 contributed each year, a 6% return, a 25% marginal tax rate today, and a 15% rate in retirement.

The purple line is the money you actually put in: $292,500. Everything above it is compounding. The four curves are nearly identical through your thirties and then fan out hard after age 50, which is why the first decade of contributions matters far more than the last.

What an IRA Calculator Actually Tells You

An IRA is a tax shelter, not an investment. The money inside it can sit in index funds, bonds, or CDs, but what makes the account special is that the IRS stops taxing the growth along the way. This calculator shows you what that shelter is worth in dollars by running the same contributions through four different tax treatments: a Traditional, SEP, or SIMPLE IRA (which is deductible now and taxed at withdrawal), a Roth IRA (funded with after-tax money and withdrawn tax-free), and an ordinary taxable brokerage or savings account (funded with after-tax money and taxed every single year).

The comparison only means something if all four numbers are stated after tax. A $1,000,000 traditional IRA balance is not a $1,000,000 Roth balance, because you still owe income tax on every dollar you pull out of the traditional account. That is why this calculator converts the Roth and taxable columns to after-tax contributions up front and applies your retirement tax rate to the traditional balance at the end.

Two mistakes show up constantly. The first is comparing a traditional IRA’s gross balance against a Roth’s net balance and concluding the traditional is far ahead: it isn’t, the tax bill just hasn’t been paid yet. The second is assuming the Roth is automatically better because withdrawals are tax-free. If your marginal rate today is 25% and your rate in retirement is 15%, the traditional account wins by exactly that 10-point spread. This calculator assumes contributions are made at the end of each year and stay flat, and that the return is constant.

How to Calculate IRA Growth (step by step)

Step One: Find how many years of growth you have

Subtract your current age from your planned retirement age. Every following step compounds over this number of years.

years = retirementAge - currentAge

65 - 30 = 35 years

Step Two: Grow the Traditional, SEP, or SIMPLE IRA before tax

Contributions to these accounts are deductible, so the full pre-tax amount goes in. Compound the starting balance, then add the future value of the yearly contributions as an ordinary annuity (each contribution lands at the end of its year).

before tax balance = currentBalance × (1 + rate)^years + annualContribution × (((1 + rate)^years - 1) / rate)

30,000 × 1.06^35 = 30,000 × 7.686087 = $230,583
7,500 × ((7.686087 - 1) / 0.06) = 7,500 × 111.4348 = $835,761
230,583 + 835,761 = $1,066,343

Step Three: Take out the tax you still owe on the traditional IRA

Every withdrawal is ordinary income, so multiply the balance by one minus your expected retirement tax rate. This is the number that can be fairly compared to a Roth.

after tax balance = before tax balance × (1 - retirementTaxRate)

1,066,343 × (1 - 0.15) = $906,392

Step Four: Grow the Roth IRA with after-tax dollars

There is no deduction for a Roth, so the same paycheck buys less inside the account. Shrink both the starting balance and each contribution by your current marginal rate, then compound at the full return. Nothing is taxed at the end.

roth balance = (currentBalance × (1 - currentTaxRate)) × (1 + rate)^years + (annualContribution × (1 - currentTaxRate)) × (((1 + rate)^years - 1) / rate)

30,000 × 0.75 = $22,500 starting
7,500 × 0.75 = $5,625 per year
22,500 × 7.686087 = $172,937
5,625 × 111.4348 = $626,821
172,937 + 626,821 = $799,758

Step Five: Grow the regular taxable account at its net rate

A taxable account is funded with after-tax dollars like the Roth, but the yearly growth is also taxed. Reduce the return itself by your marginal rate, then compound with that lower number.

net rate = rate × (1 - currentTaxRate)
taxable balance = (currentBalance × (1 - currentTaxRate)) × (1 + net rate)^years + (annualContribution × (1 - currentTaxRate)) × (((1 + net rate)^years - 1) / net rate)

net rate = 0.06 × 0.75 = 0.045
1.045^35 = 4.667346
22,500 × 4.667346 = $105,015
5,625 × ((4.667346 - 1) / 0.045) = 5,625 × 81.4966 = $458,418
105,015 + 458,418 = $563,434

Step Six: Compare the three after-tax results

Subtract to see what each tax structure is actually worth to you.

traditional advantage = traditional after tax - roth after tax
roth advantage = roth after tax - taxable after tax

906,392 - 799,758 = $106,634 more in the traditional IRA
799,758 - 563,434 = $236,324 more in the Roth than in taxable savings

Annual Schedule

Balances below use the default inputs, with each year’s contribution added at the end of the year.

Age	Traditional before tax (start)	Traditional before tax (end)	Traditional after tax (start)	Traditional after tax (end)	Roth (start)	Roth (end)	Taxable (start)	Taxable (end)
30	$30,000	$39,300	$25,500	$33,405	$22,500	$29,475	$22,500	$29,138
31	$39,300	$49,158	$33,405	$41,784	$29,475	$36,869	$29,138	$36,074
32	$49,158	$59,607	$41,784	$50,666	$36,869	$44,706	$36,074	$43,322
33	$59,607	$70,684	$50,666	$60,081	$44,706	$53,013	$43,322	$50,896
34	$70,684	$82,425	$60,081	$70,061	$53,013	$61,819	$50,896	$58,812
35	$82,425	$94,870	$70,061	$80,640	$61,819	$71,153	$58,812	$67,083
36	$94,870	$108,063	$80,640	$91,853	$71,153	$81,047	$67,083	$75,727
37	$108,063	$122,046	$91,853	$103,739	$81,047	$91,535	$75,727	$84,760
38	$122,046	$136,869	$103,739	$116,339	$91,535	$102,652	$84,760	$94,199
39	$136,869	$152,581	$116,339	$129,694	$102,652	$114,436	$94,199	$104,063
40	$152,581	$169,236	$129,694	$143,851	$114,436	$126,927	$104,063	$114,371
41	$169,236	$186,890	$143,851	$158,857	$126,927	$140,168	$114,371	$125,143
42	$186,890	$205,604	$158,857	$174,763	$140,168	$154,203	$125,143	$136,399
43	$205,604	$225,440	$174,763	$191,624	$154,203	$169,080	$136,399	$148,162
44	$225,440	$246,467	$191,624	$209,497	$169,080	$184,850	$148,162	$160,454
45	$246,467	$268,755	$209,497	$228,441	$184,850	$201,566	$160,454	$173,300
46	$268,755	$292,380	$228,441	$248,523	$201,566	$219,285	$173,300	$186,723
47	$292,380	$317,423	$248,523	$269,809	$219,285	$238,067	$186,723	$200,751
48	$317,423	$343,968	$269,809	$292,373	$238,067	$257,976	$200,751	$215,409
49	$343,968	$372,106	$292,373	$316,290	$257,976	$279,079	$215,409	$230,728
50	$372,106	$401,932	$316,290	$341,643	$279,079	$301,449	$230,728	$246,736
51	$401,932	$433,548	$341,643	$368,516	$301,449	$325,161	$246,736	$263,464
52	$433,548	$467,061	$368,516	$397,002	$325,161	$350,296	$263,464	$280,945
53	$467,061	$502,585	$397,002	$427,197	$350,296	$376,939	$280,945	$299,212
54	$502,585	$540,240	$427,197	$459,204	$376,939	$405,180	$299,212	$318,302
55	$540,240	$580,154	$459,204	$493,131	$405,180	$435,116	$318,302	$338,250
56	$580,154	$622,464	$493,131	$529,094	$435,116	$466,848	$338,250	$359,096
57	$622,464	$667,311	$529,094	$567,215	$466,848	$500,484	$359,096	$380,881
58	$667,311	$714,850	$567,215	$607,623	$500,484	$536,138	$380,881	$403,645
59	$714,850	$765,241	$607,623	$650,455	$536,138	$573,931	$403,645	$427,434
60	$765,241	$818,656	$650,455	$695,857	$573,931	$613,992	$427,434	$452,294
61	$818,656	$875,275	$695,857	$743,984	$613,992	$656,456	$452,294	$478,272
62	$875,275	$935,291	$743,984	$794,998	$656,456	$701,469	$478,272	$505,419
63	$935,291	$998,909	$794,998	$849,073	$701,469	$749,182	$505,419	$533,788
64	$998,909	$1,066,343	$849,073	$906,392	$749,182	$799,758	$533,788	$563,434

Each row is simply end = start × 1.06 + $7,500, except the taxable column, which uses × 1.045 + $5,625 because tax eats both the contribution and the yearly growth.

Reading the Result

With the default numbers, the traditional account comes out ahead by $106,634 for one reason only: the 25% deduction today is worth more than the 15% tax later. Flip those rates and the Roth wins by a similar margin. The genuinely large number is the $236,324 gap between the Roth and the plain taxable account, and that one has nothing to do with which IRA you choose. It is the cost of paying tax on growth every year instead of never. Getting money into a tax-sheltered account matters more than picking the perfect flavor of it.

This is a projection, not a promise. Real returns bounce around, tax law changes, and contribution limits move with inflation. Use it to size the decision, then check the current limits and deduction phase-outs in IRS Publication 590 before you act.

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