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Traditional IRA vs Brokerage Account

Compare tax-deferred growth in an IRA against taxable investment growth in a brokerage account.

Your Information

Timeline

35 years
18 years70 years
65 years
36 years80 years
90 years
66 years100 years

Savings

$50,000
$0$500,000
$6,500
$0$7,500

2026 IRS limit: $7,500 ($8,600 if 50+)

7%
1%12%

Tax Rates

24%
10%37%
22%
10%37%
15%
0%20%

Retirement Withdrawals

$50,000
$10,000$200,000

Take-home amount after taxes

Traditional IRA

Total Contributions$245,000
Total Growth$2,889,006
Net Taxes-$353,840
Total Withdrawn$1,821,093
Net to You$1,420,452
Remaining BalanceLeft at age 90
$1,312,913

Brokerage Account

Total Contributions$245,000
Total Growth$2,939,078
Net Taxes-$281,897
Total Withdrawn$1,396,925
Net to You$1,250,000
Remaining BalanceLeft at age 90
$1,698,980

Traditional IRA provides more retirement income

$170,452 more (13.6%) over your retirement

+13.6%

Projections

Year-by-Year Projection

AgeIRA BalIRA TaxBrok BalBrok Tax
36$60,455+$1,560$60,336-$1,679
41$124,788+$1,560$123,549-$1,803
46$215,018+$1,560$211,341-$1,976
51$341,570+$1,560$333,270-$2,215
56$519,065+$1,560$502,610-$2,548
61$768,012+$1,560$737,797-$3,011
66$1,046,116-$14,103$1,002,451-$7,121
71$1,098,595-$14,103$1,075,427-$7,735
76$1,172,199-$14,103$1,174,522-$8,274
81$1,275,004-$14,197$1,310,503-$8,792
86$1,342,156-$19,344$1,498,163-$9,343
90$1,312,913-$23,962$1,698,980-$9,847

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Disclaimer: This calculator provides estimates for illustrative purposes only. Actual results will vary based on market performance, tax law changes, and individual circumstances. Consult with a qualified financial professional before making investment decisions.