A traditional IRA gives you a tax deduction today and taxes the money when it comes out in retirement. That deduction is not automatic. If you or your spouse has a retirement plan at work, the IRS phases it out as income rises. This traditional IRA calculator applies the 2026 phase-out rules to your situation. It shows how much of your contribution you can deduct and the tax that saves, then projects what the account is worth before and after tax when you retire.
How to use the traditional IRA calculator
- Choose your filing status and enter your modified AGI.
- Check whether you are covered by a retirement plan at work and, if married, whether your spouse is.
- Enter your age, retirement age, current IRA balance and the contribution you plan each year.
- Set the annual return, your tax rate now and the tax rate you expect in retirement.
The result shows the deductible part of your 2026 contribution, the tax it saves, and the after-tax value at retirement. The table follows the account year by year and splits each contribution into deductible and nondeductible dollars.
2026 deduction phase-out ranges
The ranges come from IRS Notice 2025-67. Below the lower number the full contribution is deductible. Above the upper number none of it is.
| Your situation | Phase-out range (MAGI) |
|---|---|
| Single or head of household, covered at work | $81,000 – $91,000 |
| Married filing jointly, you are covered | $129,000 – $149,000 |
| Married filing jointly, only your spouse is covered | $242,000 – $252,000 |
| Married filing separately, either spouse covered | $0 – $10,000 |
The contribution limit itself is $7,500, or $8,600 at 50 and older. Inside a range the deductible amount is:
Round the result up to the next $10. Any positive result under $200 becomes $200. Whatever you contribute above that amount is nondeductible.
Worked example
A 40-year-old single filer covered by a 401(k) has a modified AGI of $86,000, halfway through the $81,000–$91,000 range, and contributes $7,500:
- Deductible: $7,500 × ($91,000 − $86,000) ÷ $10,000 = $3,750. The other $3,750 is nondeductible basis.
- At a 22% tax rate, the deduction saves $825 this year.
- Starting from $20,000 and growing at 6.5% to age 67, the account reaches $659,508.
- Nondeductible basis by then totals $91,900, so $567,608 is taxable. At a 15% retirement rate the tax is $85,141, leaving $574,367 after tax.
Lower the income to $81,000 or less, or uncheck the workplace-plan box, and the whole contribution becomes deductible. The balance stays the same, but less basis means more of it is taxable later, and more tax is saved up front.
Traditional IRA or something else?
A deductible traditional IRA works best when your tax rate today is higher than the rate you expect when you withdraw. A nondeductible contribution is weaker: the growth is tax-deferred but still taxed as ordinary income later, and you must track basis on Form 8606 every year. If you cannot deduct the contribution and your income allows it, a Roth IRA is usually simpler. The Roth IRA calculator checks your eligibility, and the Roth vs. traditional calculator compares the two at different tax rates.
Traditional IRAs also come with required minimum distributions. They start at 73 for people born from 1951 through 1959 and at 75 for people born in 1960 or later, and the RMD calculator estimates them. To find your current marginal rate, try the federal income tax calculator.
Estimates only, not tax or investment advice. The projection assumes your income, coverage and the 2026 limits stay the same each year; IRS Publication 590-A has the full rules.
Frequently asked questions
Is my traditional IRA contribution tax-deductible?
It is fully deductible if neither you nor your spouse is covered by a retirement plan at work. If a workplace plan covers you, the deduction phases out over an income range. For 2026 that range is $81,000 to $91,000 of modified AGI for single filers and $129,000 to $149,000 for joint filers.
Can I contribute if I earn too much to deduct it?
Yes. Traditional IRAs have no income limit for contributions, only for the deduction. The nondeductible part becomes basis that you report on IRS Form 8606, and it comes back tax-free when you withdraw.
What if only my spouse has a workplace plan?
Married couples filing jointly where only your spouse is covered get a much higher range. Your deduction phases out between $242,000 and $252,000 of joint modified AGI in 2026.
How are withdrawals taxed?
Deductible contributions and all earnings are taxed as ordinary income when withdrawn. If you have nondeductible basis, each withdrawal is part taxable and part tax-free in proportion to your total IRA balances. Withdrawals before age 59½ usually also owe a 10% additional tax unless an exception applies.
What does it mean to be covered by a workplace plan?
You count as covered if you or your employer contributed to a 401(k), 403(b), SIMPLE or SEP plan for the year, or if you were eligible for a pension plan. Box 13 of your Form W-2 has a Retirement plan checkbox that shows this.