| IRA Calculator |
| This traditional IRA calculator calculates the yearly distribution after retirement if you contribute your money into a traditional IRA and then compares this amount to the yearly distribution when you put your money into a non-IRA account instead. It shows the power of income tax deferral when you contribute money into your traditional IRA. Under an ordinary investment account, the interest earnings from the account are taxable. This reduces the after-tax rate of return that your money is compounded. If you use the money to contribute into a traditional IRA (even with the same investment instruments), the accumulated interest earnings will taxed only when you withdraw them. The rate return used for compounding is the before-tax rate of return. The following traditional IRA calculator shows you the power of interest compounding when the interest earnings of your investments in your traditional IRA is tax deferred. Warning! You should try different value for the variables in the form provided because no one can be sure about future income tax brackets, future rate of return on investments and so on. Different sets of values for these variable generate very different results! |