See tax-deferred growth, after-tax value at retirement, and how Roth compares.
Project Traditional IRA growth over decades, see annual and lifetime tax savings from the deduction, and run a head-to-head against Roth for the same contribution.
Direct answers to the most common questions, in plain language. Skim if you're in a hurry; dig deeper below.
Pre-tax retirement account — contributions deduct now, withdrawals taxed later.
A Traditional IRA gives you a tax deduction on contributions (subject to income limits), grows tax-deferred, and is taxed as ordinary income on withdrawal in retirement. The mirror image of a Roth IRA.
$7,500 in 2026, plus $1,000 catch-up if 50+.
Annual contribution limit for 2026 is $7,500 ($8,500 if you're 50+). Limits adjust each year with inflation. The limit is shared across all your IRAs (Traditional and Roth combined).
Roth if you expect higher taxes in retirement; Traditional if lower.
The math: if your tax rate in retirement will be lower than today, Traditional wins (deduct at high rate, withdraw at low rate). If higher, Roth wins. Most working-age savers in their peak earning years benefit from Traditional.
59½ without penalty; required at 73 (RMDs).
Withdraw at 59½+ to avoid the 10% early-withdrawal penalty (ordinary tax still applies). Required Minimum Distributions start at age 73 — the IRS forces you to withdraw a portion each year.
The mechanics in short answers — no jargon, no upsell.
Your contribution reduces taxable income — full deduction if you have no workplace retirement plan, phased out if you do and earn above limits.
No taxes on dividends, interest, or capital gains inside the account. Pure compounding for decades.
Withdrawals in retirement are taxed as ordinary income. Plan around your retirement-year tax brackets.
IRS-required minimum distributions start at 73. The percentage starts around 4% and rises with age. Plan tax strategy around this forced income.
Designed so anyone can model their situation in under a minute, with or without a finance background.
Decades of compounding without annual tax drag.
Annual deduction value at your marginal rate.
Side-by-side outcome on the same contribution.
Extra $1,000/yr modeled automatically.
See projected required withdrawals starting at 73.
Decades of accumulation in one screen.
Everything you might ask before, during, or after using this tool.
Full deduction if neither you nor your spouse has a workplace retirement plan. Phased out if you (or spouse) do and modified AGI exceeds limits ($89k–$109k single, $146k–$166k joint for 2026). Above the upper limit, no deduction — but you can still contribute as a non-deductible IRA.
High earners who can't contribute directly to a Roth (income above $165k single / $246k joint in 2026) make a non-deductible Traditional IRA contribution and immediately convert it to Roth. Bypass the income limit legally — but watch for the pro-rata rule if you have other Traditional IRA balances.
Age 73 (SECURE 2.0). The required withdrawal percentage starts at about 3.8% and rises with age. Penalty for missing an RMD is 25% of the missed amount.
Yes — they're separate accounts with separate limits. You can max both. The IRA deduction may be phased out if you're an "active participant" in a workplace plan and your income is over the limit.
Withdrawals before age 59½ incur a 10% penalty on top of ordinary income tax. Exceptions: medical hardship, first-home purchase (up to $10k), disability, equal periodic payments. Most other reasons trigger the penalty.
Pay tax now to never pay tax again. Makes sense in: low-income years (sabbatical, early retirement), market drawdowns (lower value to convert), or when you expect higher taxes later. Avoid: peak earning years or right before retirement.
Other Lazysmirk tools that pair well with this one.
See how tax-free Roth IRA growth compounds over decades, how much you’ll have at retirement, and how much tax you’ll save vs a regular brokerage account.
Calculate how much you need to retire, when you can retire, and whether your current savings rate will get you there. Inflation-adjusted, with Social Security.
See whether converting your Traditional IRA or 401(k) to a Roth saves you taxes long-term, with side-by-side after-tax retirement values.
Calculate compound interest with monthly contributions, see the growth curve, and find out why Einstein called it the eighth wonder of the world.
Estimate your monthly Social Security benefit at every claiming age. Compare 62, 67, and 70 side-by-side with lifetime payout, break-even, and COLA-adjusted projections.
You contribute pre-tax (assuming you're eligible for the deduction). The contribution reduces taxable income now.
Money grows without annual tax. No dividend tax, no capital-gains tax, no interest tax — just pure compounding.
Withdraw in retirement, pay ordinary income tax on the full amount. That's the deferral closing.
Will your marginal tax rate in retirement be higher or lower than today?
Lower in retirement: Traditional wins. Deduct at high rate, withdraw at low rate.
Higher in retirement: Roth wins. Pay low rate now, never pay again.
Most people in peak earning years bet on lower retirement taxes — that's why Traditional is the workhorse for high earners.
RMDs start at 73 and rise as a percentage with age — by 90, you're required to withdraw ~9% per year.
Combined with Social Security, this can push you into higher tax brackets in late retirement than you were in mid-retirement.
Mitigation: do Roth conversions in low-tax years (early retirement) to drain the Traditional IRA before RMDs hit hard.
No workplace plan: full deduction at any income.
You have a workplace plan: phased out at $89–109k single, $146–166k joint (2026).
Your spouse has a workplace plan, you don't: phased out at $230–240k joint.
Above phase-out: non-deductible Traditional IRA still allowed — useful as a backdoor Roth conduit.
Two short notes worth reading before you trust any number on this page.
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