TurboTax IRA Retirement Calculator
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
|Beginning balance: The starting value of your Traditional IRA.|
|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.|
|Current age: How old you are now.|
|Age of retirement: The age at which you wish to retire.|
|Adjusted gross income: Your expected total annual income. This is used to determine what deductible annual contributions you can make.|
|Maximize contributions: The maximum contribution amount allowed to your IRA account each year for tax deduction purposes.|
|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.|
- Depending on your circumstances, you may be able to deduct some or all of your contributions to a traditional IRA
- 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