Worked example: IRA Calculator
Zero-growth projection. This fixed reference example shows one complete scenario; the interactive results above use your current inputs.
View the example inputs
- Current age
- 40 years
- Current account balance
- 1000 $
- Eligible annual personal contribution
- 1000 $
- Employer match per personal dollar (401(k) only)
- 0 %
- Projection years
- 2 years
- Annual effective return
- 0 %
- Effective withdrawal tax rate (traditional accounts)
- 20 %
| Calculated quantity | Example result |
|---|---|
| 2026 first-year personal contribution ceiling | $7,500 |
| Projected account value | $3,000.00 |
| Projected value after entered withdrawal tax | $2,400.00 |
| Future personal plus employer contributions | $2,000.00 |
Using a tax estimate within its stated scope
Check jurisdiction, tax year and tax base
A tax calculation needs a defined jurisdiction, period and taxable base. Gross income, taxable income, a purchase price and a net-of-tax price are different starting points. The labels identify which base the current calculator expects. Use the stated tax year for any built-in table.
A progressive bracket calculation applies each rate to a slice of taxable income. A marginal rate is not the same as the effective rate on the whole amount. A flat entered-rate calculation answers a different question and cannot reproduce exemptions, credits or a complete progressive system.
Keep deductions, credits and withholding distinct
Deductions reduce a specified tax base, while credits can reduce a calculated tax. Withholding is a payment toward a liability and is not necessarily the final liability. The current tool includes only the items named in its formula and scope.
For entered-rate tools, verify the applicable rate and whether the amount already includes tax. For a versioned table, use the reference link to check the supported rules before applying the result to another year or filing situation.
Formula and calculation method
Contributions occur at year-end and remain constant; future tax rules and limits are not forecast.
2026 first-year personal limits: IRA $7,500 plus $1,100 age-50 catch-up; 401(k) $24,500 plus $8,000 age-50 catch-up, or $11,250 at ages 60–63 if the plan permits.
Scope and Limitations
- You must verify earned-income eligibility, IRA income phaseouts/deductibility, other-account contributions and employer-plan restrictions. Traditional-account after-tax value assumes fully taxable withdrawals; Roth value assumes qualified distributions. Employer match is entered as a ratio to eligible contributions, with full vesting assumed.
Reference Sources
Frequently asked questions
How does this calculator work?
Contributions occur at year-end and remain constant; future tax rules and limits are not forecast.
What assumptions should I check?
You must verify earned-income eligibility, IRA income phaseouts/deductibility, other-account contributions and employer-plan restrictions. Traditional-account after-tax value assumes fully taxable withdrawals; Roth value assumes qualified distributions. Employer match is entered as a ratio to eligible contributions, with full vesting assumed. 2026 first-year personal limits: IRA $7,500 plus $1,100 age-50 catch-up; 401(k) $24,500 plus $8,000 age-50 catch-up, or $11,250 at ages 60–63 if the plan permits.
Can I save or print this calculation?
Use Copy link with inputs to reproduce the scenario, Download results for a text record, or Print. Where a schedule is shown, its CSV download includes every row.