Traditional IRA Calculator
A Traditional IRA creates a tax deduction at contribution and grows tax-deferred. KeyBank’s Traditional IRA Calculator shows how your IRA will grow, and compares it to a Roth IRA, which has different tax consequences, so you can make a wise choice.
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Additional Functions
Click this menu to access additional calculator functions including:
Reset to Defaults: Click the "Reset to Defaults" button to reload the default values for this calculator.
Clear all Fields: Click the "Clear all Fields" button to clear all entry fields and reset any radio buttons or drop downs to their default values.
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Save a copy*: This allows you to save a copy of your entries. Up to 10 sets of data are allowed for each calculator. All data is stored locally and encrypted within your browser. The data is not transmitted over the Internet.
* Note: The "Save a Copy" function is temporary and will only retain information until you clear your browser's cache.
Traditional IRA savings: |
Starting balance
The current balance of your traditional IRA.
Annual contribution
The amount you will contribute to your IRA each year. This calculator assumes that you make your contribution at the beginning of each year. For 2025, the maximum annual IRA contribution is $7,000 which is the same as 2024. It is important to note that this is the maximum total contributed to all of your IRA accounts. The contribution limit increases with inflation in $500 increments. An annual change to the contribution limit only occurs if the cumulative effect of inflation since the last adjustment is $500 or more.
If you are 50 or older you can make an additional 'catch-up' contribution of $1,000. The 'catch-up' contribution amount of $1,000 remains unchanged for 2025, but is adjusted for inflation in $100 increments starting in 2024. In order to qualify for the 'catch-up' contribution, you must turn 50 by the end of the year in which you are making the contribution.
Current age
The current age of the account owner must be 71 or less for this calculator. Although it is possible to make contributions to an IRA at any age when you have eligible income, this calculator does not take Required Minimum Distributions (RMD) into account, which begin at age 75 (or 70 1/2 if you were born before 7/1/1949, 72 if you were born 7/1/1949 to 12/31/1951, 73 if you were born 1/1/1951 to 1/1/1960) and is not designed for individuals that are required to make these distributions.
Age at retirement
Age at which you plan to retire. The age at retirement of the account owner must be 72 or less for this calculator. Although it is possible to make contributions to an IRA at any age when you have eligible income, this calculator does not take Required Minimum Distributions (RMD) into account, which begin at age 75 (or 70 1/2 if you were born before 7/1/1949, 72 if you were born 7/1/1949 to 12/31/1951, 73 if you were born 1/1/1951 to 1/1/1960) and is not designed for individuals that are required to make these distributions.
This calculator assumes that the year you retire, you do not make any contributions to your IRA. For example, if you retire at age 65, your last contribution occurs when you are actually age 64.
Adjusted gross income
What you anticipate your income to be. This is used to calculate whether you are able to deduct your annual contributions from your taxes. It is important to note that there are no income limits preventing you from contributing to a traditional IRA. Annual income only affects your ability to make a tax-deductible contribution.
Maximize contributions
Check this box to contribute the maximum allowed to your account each year. This includes the additional catch-up contribution available when you are age 50 or over.
Total contributions
The total amount contributed to this IRA.
Total non-deductible contributions
The total of your traditional IRA contributions that were made without a tax deduction. Traditional IRA contributions are often tax-deductible. However, if you have an employer-sponsored retirement plan at work, such as a 401(k), your tax deduction is limited based on your income. This calculator automatically determines if your tax deduction is limited by your income.
| Tax Filing Status | Income Phase-Out Range |
|---|---|
| Married filing jointly | $126,000 - $146,000 |
| Single, Head of Household or Married Filing Separately (and have not lived with spouse for last year)* | $79,000 - $89,000 |
| Married filing separately* | $0 - $10,000 |
| Married filing jointly (spouse has employer plan, IRA owner does not)** | $236,000 - $246,000 |
*Married filing separately can use the limits for single individuals if they have not lived with their spouse in the past year. This calculator assumes you are not required to use the lower "Married filing separately" limits. If you are "Married filing separately" and have not lived with your spouse for the last year, you should uncheck the "married" check box.
**This calculator does not account for the special situation where your spouse has an employer-sponsored retirement plan but you do not.
Investment return, taxes, employment and marital status: |
Expected rate of return
The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2024, had an annual compounded rate of return of 14.9%, including reinvestment of dividends. From January 1, 1970 to December 31st 2024, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 11.2% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution pay less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.
Current tax rate
Your current marginal tax rate you expect to pay on your taxable investments.
Retirement tax rate
The marginal tax rate you expect to pay on your investments at retirement.
Married
Check the box if you are married. Uncheck this box if you are unmarried or you are "Married filing separately". This is used to determine whether or not your annual contributions are tax-deductible.
This calculator assumes that if you are "Married filing separately" you have not lived with your spouse anytime during the last year. This qualifies you to use the "Single" deduction phase-out range instead of the much lower "Married filing separately" phase-out range when calculating your traditional IRA tax deduction.
Employer plan
Check the box if you have an employer-sponsored retirement plan, such as a 401(k) or pension. This is used to determine if you can deduct your annual contributions from your taxes. For more information on how an employer plan can affect your IRA tax deduction, see the definition for non-deductible contributions.
Totals at Retirement |
Traditional IRA vs. Taxable Account |
Definitions
Starting balance
The current balance of your traditional IRA.
Annual contribution
The amount you will contribute to your IRA each year. This calculator assumes that you make your contribution at the beginning of each year. For 2025, the maximum annual IRA contribution is $7,000 which is the same as 2024. It is important to note that this is the maximum total contributed to all of your IRA accounts. The contribution limit increases with inflation in $500 increments. An annual change to the contribution limit only occurs if the cumulative effect of inflation since the last adjustment is $500 or more.
If you are 50 or older you can make an additional 'catch-up' contribution of $1,000. The 'catch-up' contribution amount of $1,000 remains unchanged for 2025, but is adjusted for inflation in $100 increments starting in 2024. In order to qualify for the 'catch-up' contribution, you must turn 50 by the end of the year in which you are making the contribution.
Current age
The current age of the account owner must be 71 or less for this calculator. Although it is possible to make contributions to an IRA at any age when you have eligible income, this calculator does not take Required Minimum Distributions (RMD) into account, which begin at age 75 (or 70 1/2 if you were born before 7/1/1949, 72 if you were born 7/1/1949 to 12/31/1951, 73 if you were born 1/1/1951 to 1/1/1960) and is not designed for individuals that are required to make these distributions.
Age at retirement
Age at which you plan to retire. The age at retirement of the account owner must be 72 or less for this calculator. Although it is possible to make contributions to an IRA at any age when you have eligible income, this calculator does not take Required Minimum Distributions (RMD) into account, which begin at age 75 (or 70 1/2 if you were born before 7/1/1949, 72 if you were born 7/1/1949 to 12/31/1951, 73 if you were born 1/1/1951 to 1/1/1960) and is not designed for individuals that are required to make these distributions.
This calculator assumes that the year you retire, you do not make any contributions to your IRA. For example, if you retire at age 65, your last contribution occurs when you are actually age 64.
Adjusted gross income
What you anticipate your income to be. This is used to calculate whether you are able to deduct your annual contributions from your taxes. It is important to note that there are no income limits preventing you from contributing to a traditional IRA. Annual income only affects your ability to make a tax-deductible contribution.
Maximize contributions
Check this box to contribute the maximum allowed to your account each year. This includes the additional catch-up contribution available when you are age 50 or over.
Total non-deductible contributions
The total of your traditional IRA contributions that were made without a tax deduction. Traditional IRA contributions are often tax-deductible. However, if you have an employer-sponsored retirement plan at work, such as a 401(k), your tax deduction is limited based on your income. This calculator automatically determines if your tax deduction is limited by your income.
| Tax Filing Status | Income Phase-Out Range |
|---|---|
| Married filing jointly | $126,000 - $146,000 |
| Single, Head of Household or Married Filing Separately (and have not lived with spouse for last year)* | $79,000 - $89,000 |
| Married filing separately* | $0 - $10,000 |
| Married filing jointly (spouse has employer plan, IRA owner does not)** | $236,000 - $246,000 |
*Married filing separately can use the limits for single individuals if they have not lived with their spouse in the past year. This calculator assumes you are not required to use the lower "Married filing separately" limits. If you are "Married filing separately" and have not lived with your spouse for the last year, you should uncheck the "married" check box.
**This calculator does not account for the special situation where your spouse has an employer-sponsored retirement plan but you do not.
Total contributions
The total amount contributed to this IRA.
IRA total before taxes
Total value of your IRA at retirement before taxes.
IRA total after taxes
Total value of your IRA at retirement after taxes are paid.
Total taxable account
Total value of your savings, at retirement, if the after-tax contribution amount is deposited into a taxable account. This value, your 'Taxable Account Deposit', is calculated by assuming you could save an amount equal to the after-tax cost of contributing to a traditional IRA. Your 'Taxable Account Deposit' is equal to your traditional IRA contribution minus any tax savings. For example, assume you have a 30% combined state and federal tax rate. If you contribute $2,000 to a traditional IRA and qualify for the full $2,000 tax deduction, the value of your tax deduction is $2,000 X 30% or $600. The after-tax cost of contributing to your traditional IRA would then be $2,000 minus $600 or $1,400. If you do not qualify for tax-deductible traditional IRA contributions, your 'Taxable Account Deposit' will be the same as your traditional IRA contribution.
In addition, all earnings in your taxable account are assumed to be taxable in the year they are earned.
Expected rate of return
The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2024, had an annual compounded rate of return of 14.9%, including reinvestment of dividends. From January 1, 1970 to December 31st 2024, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 11.2% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution pay less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.
Current tax rate
Your current marginal tax rate you expect to pay on your taxable investments.
Retirement tax rate
The marginal tax rate you expect to pay on your investments at retirement.
Married
Check the box if you are married. Uncheck this box if you are unmarried or you are "Married filing separately". This is used to determine whether or not your annual contributions are tax-deductible.
This calculator assumes that if you are "Married filing separately" you have not lived with your spouse anytime during the last year. This qualifies you to use the "Single" deduction phase-out range instead of the much lower "Married filing separately" phase-out range when calculating your traditional IRA tax deduction.
Employer plan
Check the box if you have an employer-sponsored retirement plan, such as a 401(k) or pension. This is used to determine if you can deduct your annual contributions from your taxes. For more information on how an employer plan can affect your IRA tax deduction, see the definition for non-deductible contributions.
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Calculators do not include the fees and restrictions that certain products may have. Please visit the applicable banking product pages on key.com for specific terms and conditions, or visit any KeyBank branch to discuss what products may be appropriate for you.
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