Traditional IRA Calculator 2026
$7,500 IRA limit, $1,100 catch-up at 50+, deductibility phase-outs, RMDs at 73
Last updated: November 2025 · Source: IRS Notice 2025-67. Active-participant deductibility phase-out: single $81,000–$91,000; MFJ $129,000–$149,000
Traditional IRA Details
2026 Contribution Limit
$7,500
Tax savings on contributions
Tax on withdrawals
Tax-Deferred Growth Projection
Retirement Summary
Traditional IRA Benefits
Immediate Tax Deduction: Contributions reduce your taxable income now. Tax-Deferred Growth: No taxes until withdrawal. RMDs Start at 73: You must take required minimum distributions starting at age 73. Best if you expect lower taxes in retirement.
2026 Limits: $7,500 ($8,600 if 50+). Deductibility may be limited if you have a workplace retirement plan.
Understanding Traditional IRAs
Tax-Deferred Growth
A Traditional IRA allows your investments to grow tax-deferred, meaning you do not pay taxes on dividends, interest, or capital gains while they remain in the account. This tax deferral can significantly accelerate your savings over time because the money that would have gone to taxes stays invested and compounds. You only pay income tax when you withdraw funds in retirement.
2026 Contribution Limits
For 2026, the IRA contribution limit is $7,500 (up from $7,000 in 2025), or $8,600 if you are age 50 or older (the additional $1,100 is a catch-up contribution). This limit is shared across all of your Traditional and Roth IRAs combined. For example, contributing $4,000 to a Roth IRA leaves $3,500 of room for a Traditional IRA in the same year.
2026 Deductibility Rules
Whether your Traditional IRA contributions are tax-deductible depends on income and whether you (or your spouse) are covered by an employer-sponsored retirement plan. If neither of you has a workplace plan, contributions are fully deductible regardless of income. For 2026, if YOU are covered by a workplace plan, the deduction phases out at $81,000–$91,000 MAGI single and $129,000–$149,000 MFJ. If only your spouse is covered, your phase-out is $242,000–$252,000 MFJ. Non-deductible contributions still grow tax-deferred and create basis you must track (Form 8606).
Required Minimum Distributions (RMDs)
Unlike Roth IRAs, Traditional IRAs require you to start taking minimum withdrawals once you reach a certain age. Under the SECURE 2.0 Act, you must begin taking RMDs by April 1 of the year after you turn 73. The amount is calculated by dividing your account balance by an IRS life expectancy factor. Failing to take your RMD results in a steep penalty of 25% of the amount not withdrawn (reduced from the previous 50%).
Rollover Rules
You can roll over funds from a 401(k), 403(b), or other employer-sponsored plan into a Traditional IRA when you leave a job. A direct rollover (trustee-to-trustee transfer) avoids any tax withholding or penalties. You can also convert a Traditional IRA to a Roth IRA, but the converted amount is taxed as ordinary income in the year of conversion. There is a one-rollover-per-year rule for IRA-to-IRA transfers, though direct rollovers from employer plans are not subject to this limit.
Frequently Asked Questions
What is a Traditional IRA?
A Traditional IRA is a tax-advantaged retirement account where contributions may be tax-deductible and earnings grow tax-deferred. You pay income tax on withdrawals in retirement, ideally when you are in a lower tax bracket.
What is the IRA contribution limit for 2026?
Per IRS Notice 2025-67, the 2026 IRA limit is $7,500 (up from $7,000 in 2025), or $8,600 if you are age 50 or older. The limit applies across all Traditional and Roth IRAs combined.
When do I have to start taking Required Minimum Distributions (RMDs)?
Under the SECURE 2.0 Act, you must begin taking RMDs from a Traditional IRA by April 1 of the year after you turn 73. The amount is calculated based on your account balance and IRS life expectancy tables.
Is my Traditional IRA contribution tax-deductible?
Depends on workplace-plan coverage and income. If neither you nor your spouse is covered, contributions are fully deductible at any income. If you are covered, 2026 deductibility phases out at $81,000–$91,000 MAGI single and $129,000–$149,000 MFJ. If only your spouse is covered, your phase-out is $242,000–$252,000 MFJ.
Can I roll over my 401(k) into a Traditional IRA?
Yes. When you leave a job, you can roll your 401(k) balance into a Traditional IRA with no tax consequences as long as it is a direct rollover (trustee-to-trustee transfer). This gives you broader investment options and consolidates your retirement accounts. Rolling into a Roth IRA is also possible but triggers income tax on the converted amount.