This IRA calculator shows how much of your traditional IRA contribution is tax-deductible in 2026, projects your balance at retirement, and compares it with putting the same budget into a Roth IRA, so you can see which suits your tax situation.
2026 traditional IRA deduction limits
Anyone with earned income can contribute to a traditional IRA, up to $7,500 in 2026 ($8,600 at 50 or older). Whether the contribution is deductible depends on your income and whether you or your spouse have a retirement plan at work.
| Situation | 2026 deduction phase-out (MAGI) |
|---|---|
| Single, covered by a workplace plan | $81,000 – $91,000 |
| Married filing jointly, contributor covered | $129,000 – $149,000 |
| Married filing jointly, only spouse covered | $242,000 – $252,000 |
| Married filing separately, covered | $0 – $10,000 |
| Neither spouse covered | Fully deductible at any income |
Traditional vs Roth IRA: how the comparison works
A traditional IRA gives you a tax deduction now, and withdrawals are taxed later. A Roth IRA gives no deduction now, but qualified withdrawals are tax-free. To compare fairly, the calculator assumes the same out-of-pocket budget: the Roth contribution is your traditional contribution minus the tax you would have saved. If your tax rate in retirement is lower than today, the traditional IRA usually wins; if it is higher, the Roth usually wins; if they are equal, the result is the same.
Worked example
A single 30-year-old with $75,000 of income and a workplace plan is below the $81,000 threshold, so a $7,000 contribution is fully deductible and saves $1,540 in tax at a 22% rate. Starting from $10,000 at a 7% return, the IRA could grow to about $1,142,000 by 65. At a 15% tax rate in retirement, that is worth about $971,000 after tax, compared with about $898,000 for the same budget in a Roth IRA.
Things to know
- Required minimum distributions from traditional IRAs generally start at age 73.
- Withdrawals before 59½ usually face a 10% penalty plus income tax, with some exceptions.
- Nondeductible contributions must be reported on IRS Form 8606 so you are not taxed twice.
Frequently asked questions
Is my traditional IRA contribution tax-deductible?
It is fully deductible if neither you nor your spouse is covered by a workplace retirement plan. If you are covered, the deduction phases out between $81,000 and $91,000 for single filers and $129,000 and $149,000 for married couples filing jointly in 2026.
What is the IRA contribution limit for 2026?
$7,500, plus a $1,100 catch-up if you are 50 or older, for a total of $8,600. The limit is shared between traditional and Roth IRAs.
Should I choose a traditional or Roth IRA?
If you expect a lower tax rate in retirement than now, a traditional IRA often comes out ahead. If you expect the same or a higher rate, a Roth usually does. Many people hold both to spread their tax risk.
Can I have a 401(k) and an IRA?
Yes. Having a workplace plan does not stop you contributing to an IRA; it only affects whether a traditional IRA contribution is deductible.
When do I have to start withdrawals?
Required minimum distributions from traditional IRAs generally begin at age 73. Roth IRAs have no required distributions for the original owner.
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Last reviewed: October 2026. This calculator is for education only and is not financial, tax or legal advice.