Anticipated Retirement Tax Rate Enter the tax rate closest to the anticipated retirement tax rate. For the most accurate results, try to include all anticipated federal, state, and local taxes. Actual tax rates may vary at retirement. Enter the annual IRA contribution amount. Enter the percentage of your Traditional IRA contributions that are deductible.
Special rules apply to married couples who file separately.
Calculations are based on anticipated rates of return, actual results may vary based on investment performance. Upon selecting this option, the amount projected in the Traditional IRA field will be increased to reflect additional retirement savings that could accumulate if the realized tax savings were placed in a taxable investment earning the same rate of return as the IRA assets. The timing of this investment is assumed to happen on December 31 of the year for which the taxes are due on the Roth contribution. Taxes are assumed to be paid on the earnings of this account each year on December 31 using the current tax rate that has been selected. These tax savings are assumed to be invested at the end of the year of each contribution year, and the earnings on this account are assumed to be taxed at the end of each contribution year.