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IRA Savings Calculator

Making contributions to a traditional Investment Retirement Account (IRA) can enable a tax deduction now, along with tax-deferred growth. A traditional IRA may be an excellent alternative to long-term savings in a Roth IRA if you qualify for an IRA tax deduction. The TurboTax traditional IRA calculator can give you a look at how much could be saved by using a traditional IRA.

TurboTax IRA Retirement Calculator

TurboTax IRA Calculator: See how making IRA contributions can help you save money on your taxes today, while saving in a investment retirement account for the future.

Estimate Your Tax Beneficial IRA Contributions

If your not sure how to get the best bang for your buck with your IRA contributions, we  are here to shine some light on the subject for you. It’s important to understand how much you should contribute to your IRA in order to reap the biggest reward as a deduction now, and an investment for your future.

 Traditional IRA Account Definitions

bullet Beginning balance: The starting value of your Traditional IRA.
bullet Annual contribution: How much you will contribute to your Traditional IRA on an annual basis. The tax deductible contribution limit increases with inflation in $500 increments only when the cumulative effect of inflation is $500 or more since the previous adjustment.
bullet Current age: How old you are now.
bullet Age of retirement: The age at which you wish to retire.
bullet Adjusted gross income: Your expected total annual income. This is used to determine what deductible annual contributions you can make.
bullet Maximize contributions: The maximum contribution amount allowed to your IRA account each year for tax deduction purposes.
bullet Total non-deductible contributions: Traditional IRA contributions you have made that are not tax deductible. In employer sponsored retirement plans, such as a 401(k), your tax deductions may governed by some limitations.

The TurboTax IRA Tax Calculator can determine if your tax deduction is limited by your income. For various reasons retirement plan tax deductions are phased out for some investments.

bullet Total contributions: The total amount contributed to your IRA.
bullet IRA total before taxes: Total IRA value at retirement before taxes.
bullet IRA total after taxes: Total IRA value after taxes, at retirement.
bullet Total taxable account: Total savings value at retirement, with after-tax contribution amount deposited in taxable account.
bullet Taxable account deposit: Non tax deductible traditional IRA contributions, “Taxable Account Deposits” are treated the same traditional IRA contribution.
bullet Expected rate of return: The annual IRA rate of return for your account.
bullet Current tax rate: Your current marginal tax rate you will pay on investments.
bullet Retirement tax rate: Your marginal tax rate for investments at retirement.
bullet Employer plan: Employer sponsored retirement plans you may be benefiting from, such as a 401(k) or a pension plan.

What’s New and Changing for IRA Contributions

The Modified AGI limit for traditional IRA contributions increases with inflation. If you are covered by a retirement plan at work, your deductible contributions to a traditional IRA are reduced (phased out) based your modified AGI limitations.

An original IRA (also called an ordinary or regular IRA) is most often referred to as a “traditional IRA.” A traditional IRA is any IRA that is not regarded as a Roth IRA or a SIMPLE IRA.

Tax Advantages of a Traditional IRA:

bullet Depending on your circumstances, you may be able to deduct some or all of your contributions to a traditional IRA.
bullet Generally IRA accounts, including earnings and gains, are not subjected to being taxed until they are distributed.

Who Can Open a Traditional IRA?

You can open and make contributions to a traditional IRA if you received taxable compensation during the year, and you were not age 70½ by the end of the year

You may have a traditional IRA even if you are covered by another retirement plan. However, you may not be able to deduct all your contributions if you or your spouse are covered by an employer retirement plan.

If you and your spouse are under age 70½ and have compensation, each of you may open an IRA. However, you both may Not participate in the same IRA

2016 - 2017 Tax Season Tools

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