Skip to content
FinCalculate

Traditional IRA Calculator: How Much Can You Deduct in 2026?

This traditional IRA calculator shows how much of your contribution you can deduct for 2026, the federal income tax that saves, and what the deducted money grows to against a taxable account.

Example numbers

40 years old

65 years old

Assumptionsannual return 7%, tax rate when you withdraw 22%, tax on taxable-account growth 15%

Result

The answerfrom an example

You can deduct $4,500 of your $7,500 contribution, which cuts your 2026 federal income tax by $990.

Worked on Age 40, single, covered at work, $85,000 income, $7,500 a year, 7% return. Change anything below to use yours.

Deductible this year
$4,500
Federal tax saved this year
$990
Not deductible
$3,000

The figures behind it

Deductible this year
$4,500
Phased out between $81,000 and $91,000: the IRS worksheet cuts it in proportion, rounds up to the next $10 and allows at least $200.
Federal tax saved this year
$990
2026 federal income tax with and without the deduction, after the $16,100 standard deduction. Your bracket today: 22%.
Not deductible
$3,000
It can still go in. Report it on Form 8606 so it is not taxed again on the way out.
IRA at 65, after tax
$250,544
The deducted money each year, grown tax-deferred and taxed at your withdrawal rate.
Taxable account at 65
$213,571
The same money less the tax it saved, with tax on the growth each year.
IRA ahead by
$36,973
After all tax: tax-deferred growth, plus any gap between the rate the deduction saved and the rate you withdraw at.
Your contribution this year$7,500
  • Deductible$4,500
  • Not deductible$3,000

The deducted money each year, after tax

The deducted money each year, after taxIRA, after withdrawal tax ends at $251K. Taxable account ends at $214K. Use the left and right arrow keys to read each year. The same figures appear in the payment schedule below.$0$100K$200K$300KToday510152025●■● $251K■ $214K

Years from today

IRA, after withdrawal taxTaxable account

Hover or tap the chart to read any year.

Payment scheduleShow
AgeYou put inDeductibleTax savedIRA balanceTaxable account
40$7,500$4,500$990$4,647$3,607
41$7,500$4,500$990$9,630$7,435
42$7,500$4,500$990$14,974$11,497
43$7,500$4,500$990$20,703$15,808
44$7,500$4,500$990$26,847$20,382
45$7,500$4,500$990$33,435$25,235
46$7,500$4,500$990$40,500$30,386
47$7,500$4,500$990$48,075$35,851
48$7,500$4,500$990$56,197$41,651
49$7,500$4,500$990$64,907$47,805
50$7,500$5,160$1,135$74,928$54,865
51$7,500$5,160$1,135$85,673$62,356
52$7,500$5,160$1,135$97,195$70,305
53$7,500$5,160$1,135$109,550$78,741
54$7,500$5,160$1,135$122,799$87,692
55$7,500$5,160$1,135$137,004$97,191
56$7,500$5,160$1,135$152,237$107,271
57$7,500$5,160$1,135$168,571$117,967
58$7,500$5,160$1,135$186,086$129,317
59$7,500$5,160$1,135$204,867$141,361
60$7,500$5,160$1,135$225,006$154,141
61$7,500$5,160$1,135$246,600$167,703
62$7,500$5,160$1,135$269,756$182,095
63$7,500$5,160$1,135$294,585$197,366
64$7,500$5,160$1,135$321,210$213,571

What this result assumes

  • Deduction limits, phase-outs, brackets and the standard deduction are the 2026 figures, held for every year along with your income.
  • Tax saved is federal income tax only, with the standard deduction and no credits. State tax is not included.
  • Your income stands in for earned income: a contribution can’t exceed what you earn, and a married couple filing jointly counts both spouses’ pay.
  • The comparison follows only the deducted money. The taxable account starts with the same money less the tax the deduction saved; the IRA is taxed in full when withdrawn, with no early-withdrawal penalty assumed.
  • Contributions are spread evenly through each year and the return is constant.
  • Nondeductible contributions grow tax-deferred too, and only their earnings are taxed when withdrawn. They are left out of the comparison.

A single filer covered by a 401(k) at work with $85,000 of modified AGI can deduct $4,500 of a $7,500 contribution, saving $990 at the 22% bracket. With no plan at work in the household, the whole contribution is deductible at any income.

Methodology

Reviewed by Acun Özdilek

Who can deduct, and how much

If no one in your household is covered by a retirement plan at work, the whole contribution is deductible at any income. If you are covered, the deduction phases out between $81,000 and $91,000 of modified AGI (your income before this deduction) for a single filer or head of household, and between $129,000 and $149,000 for a married couple filing jointly. If only your spouse is covered, it phases out between $242,000 and $252,000.

Inside a range, Worksheet 1-2 in Publication 590-A cuts the deduction in proportion to how far through the range you are, rounds it up to the next $10 and allows at least $200. The contribution itself is the smaller of the 2026 limit, $7,500 or $8,600 from age 50, and your earned income. The Roth IRA calculator applies a different income limit, to the contribution itself, and a Roth contribution has no deduction.

What the deduction saves

The calculator works out your federal income tax twice, with and without the deduction, after the standard deduction. A deduction that crosses a bracket edge is priced at both rates, and below the standard deduction it saves nothing. The take-home pay calculator shows the full paycheck view.

Tax-deferred against taxable

Both accounts get the same money and the same return. The IRA is taxed when you withdraw, at the rate you enter. The taxable account starts with the deduction less the tax it saved, and pays tax on its growth each year. The taxable account can come out ahead only when the deduction saved no larger a share than the withdrawal rate takes, for example when income is under the standard deduction. When the two rates are equal and growth is untaxed, the accounts match in theory and a small lead is rounding.

If your employer matches 401(k) contributions, the 401(k) calculator shows what the match adds. The investment calculator grows one account type at a time.

Assumptions

  • The 2026 contribution limit, catch-up, phase-out ranges, brackets and standard deduction are held for every year.
  • Your income is held at today’s figure.
  • Tax saved is federal income tax only, with the standard deduction and no credits or itemized deductions.
  • Your income stands in for earned income, which caps the contribution.
  • Married filing separately is not modelled.
  • The IRA is taxed in full at the withdrawal rate you enter, with no early-withdrawal penalty.
  • Only the deducted money is compared; nondeductible contributions are left out.
  • The return is constant, with no volatility.

Sources

Common questions

Can I deduct a traditional IRA contribution if I have a 401(k) at work?

Yes, in full if your modified AGI is at or below $81,000 as a single filer or head of household, or $129,000 married filing jointly. Above that the deduction shrinks, and it is gone at $91,000 or $149,000. You count as covered if you were in the plan for any part of the year.

What if only my spouse has a retirement plan at work?

Then your deduction phases out between $242,000 and $252,000 of joint modified AGI. Below $242,000, the whole contribution is deductible.

How much tax does a traditional IRA contribution save?

Roughly the deduction times your top tax bracket, unless the deduction crosses a bracket edge or your income is under the standard deduction. At the defaults it is $4,500 at 22%, which saves $990.

Can I contribute to a traditional IRA if I can’t deduct it?

Yes, as a nondeductible contribution up to the limit. Its earnings grow tax-deferred, and Form 8606 tracks what you put in so it is not taxed twice. For the Roth route, see the Roth IRA calculator.

What is the deadline for a 2026 traditional IRA contribution?

Your tax filing due date, not counting extensions. For most people that is April 15, 2027.

Is there an age limit for traditional IRA contributions?

No, not since 2020, when the rule stopping contributions at age 70½ was repealed. You still need earned income, and the catch-up starts at 50.

Related calculators

All retirement →