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IRA Calculator

Use our free IRA calculator to determine how much you can contribute to your Traditional, Non-Traditional, or Roth IRA this year.

Matthew Jones Matthew Jones Writer and Editor
Jeff Hoyt Jeff Hoyt Editor in Chief is supported by commissions from providers listed on our site. Read our Editorial Guidelines

Types of IRAs

The type of IRA you have affects the maximum contribution you can make each year. There are also differences in how and when you pay taxes on your retirement assets. It’s important to know how your IRA works so that you can get the most out of your savings.

Traditional IRA

A Traditional IRA is the most common type of IRA. You make pre-tax contributions, which means that you won’t have to pay taxes on those funds until you start making withdrawals in retirement. Traditional IRAs are generally best if you want to reduce your current tax burden. If you’re under 50 years old, the maximum contribution limit for Traditional IRAs is $7,000 per year in 2024. If you’re over 50, the contribution limit is $8,000.

Pro Tip:

Pro Tip: Want to save on taxes? Check out our guide to tax credits and deductions for seniors!

Roth IRA

A Roth IRA allows you to invest after-tax income. This means your funds can grow tax-free, and you won’t pay any taxes when you make withdrawals during retirement. The maximum contribution limits for Traditional and Roth IRAs are the same – $7,000 (under 50) and $8,000 (over 50) in 2024.


An SEP IRA is a type of non-traditional IRA that allows employers or self-employed individuals to make contributions to employee accounts. The taxation and distribution rules are similar to those of Traditional IRAs, but SEP IRAs can have much higher contribution limits. In 2024, the maximum contribution limit is 25% of gross income or $69,000 — whichever is lower. The contribution limit for a SEP IRA remains the same, regardless of your age.


FYI: Want even more financial protection during retirement? Check out our guide to insurance for seniors!


A SIMPLE IRA is another kind of non-traditional IRA set up by employers. Your employer can match your contributions, up to 3% of your annual earnings. Like SEP IRAs, SIMPLE IRAs also benefit from higher contribution limits. In 2024, the SIMPLE IRA annual contribution limits are $16,000 for people under 50 and $19,500 for people over 50.

How to Use Our IRA Contribution Calculator

Our free IRA contribution calculator is easy to use, and you’ll only need a few pieces of information to get your results.

  • Contribution tax year
  • Modified adjusted gross income
  • Tax filing status
  • Work retirement plan status
  • Spouse’s work retirement plan status (if applicable)
  • Annual earned income
  • Spouse’s annual earned income (if applicable)
  • Age at the end of the year
  • Spouse’s age at the end of the year (if applicable)
Pro Tip:

Pro Tip: Check out our guide to finances for older adults for even more financial advice.

Once you input this information and click “Calculate,” you’ll get a simple calculation of the maximum contributions you and your spouse can make to a non-traditional IRA, Traditional IRA, or Roth IRA for the year.

What Happens If I Contribute Too Much?

If you contribute more to your IRA than you’re eligible to contribute in a given year, you will have to pay a 6% penalty tax on the excess contributions. This penalty is applied every year until the excess funds are withdrawn. You must also withdraw any income earned from the contributions to avoid further penalties.1

FAQs About IRAs

  • How much will an IRA grow in 20 years?

    IRA growth is dependent on how much you put in, how the funds are invested, and how the markets perform. Your experience will vary, but the average IRA grows between 7% and 10% annually. This means that if you contribute $6,000 per year for 20 years, you can expect your IRA to grow from $0 to about $250,000 (pre-tax).

  • How much should you have in your IRA when you retire?

    If an IRA is your only retirement savings account, then you should aim to have 25 times the amount you expect to withdraw per year. This ensures that you will have enough to complement your Social Security benefits for 25 years of retirement.

  • At what age should you stop investing in an IRA?

    Most seniors stop contributing to their IRA when they retire, but this age can vary from one person to the next. You’ll also need to consider the type of IRA you have. IRAs no longer have an age limit for contributions (as long as you have taxable compensation), but if you have a Traditional IRA, you’ll be required to take Required Minimum Distributions (RMD) at age 73.

  1. Internal Revenue Service. (2023). Retirement Topics – IRA Contribution Limits.

Written By:
Matthew Jones
Writer and Editor
Matthew is a freelance writer who has written on a wide range of topics, from personal finance to nutrition. Over the past three years, Matthew has worked extensively on articles and guides for seniors related to Medicare, insurance, and finance…. Learn More About Matthew Jones
Reviewed By:
Jeff Hoyt
Editor in Chief
As Editor-in-Chief of the personal finance site, Jeff produced hundreds of articles on the subject of retirement, including preventing identity theft, minimizing taxes, investing successfully, preparing for retirement medical costs, protecting your credit score, and making your money last… Learn More About Jeff Hoyt
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