IRA Calculator
The IRA Calculator helps evaluate and compare different types of Individual Retirement Accounts (IRAs) like Traditional, Roth, SEP, and SIMPLE IRAs, alongside regular taxable savings, primarily for U.S residents.
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Read MoreIRAs are popular retirement savings vehicles with tax advantages defined by IRS regulations. Traditional IRAs allow pretax contributions that grow tax-deferred, with taxes paid upon withdrawal during retirement. Roth IRAs use after-tax contributions but offer tax-free withdrawals after qualifying periods.
SEP IRAs cater to self-employed individuals and small business owners, allowing higher contribution limits tied to income. SIMPLE IRAs are designed for small employers offering simpler administrative requirements and mandatory employer contributions.
The IRA calculator factors in your current balance, annual contributions, expected investment growth, retirement and current age, and tax rates to project account values at retirement. It converts Roth and taxable savings to after-tax equivalents for easier comparison.
Generally, Traditional, SIMPLE, and SEP IRAs accumulate more before-tax wealth but may yield lower after-tax balances today compared to Roth IRAs, which grow tax-free and allow penalty-free lifetime tax-free withdrawals.
IRAs offer broad investment options—stocks, mutual funds, bonds, and more—allowing customization aligned with risk tolerance and goals. The IRA calculator helps visualize these outcomes and informs smarter retirement planning.
Understanding IRA differences, contribution limits, taxation, and withdrawal rules is crucial. For instance, Traditional IRS require mandatory withdrawals starting at age 73, while Roth IRAs do not.
This calculator serves as a valuable tool for both new savers and experienced investors to compare scenarios and optimize retirement wealth accumulation.