An Individual Retirement Account (IRA) is a versatile type of retirement investment account that can play a key role in your retirement. Most people who have IRAs think about the saving and investing part, but don't always think about perhaps the most important part: the income you can expect to receive from that account once you retire. Use this calculator to estimate how much monthly and annual income an IRA might generate using your own return and tax rate assumptions.
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Once in a while you might hear people say, "It's best to approach retirement with multiple sources of income." Some question how that's possible, given their retirement resources. Use this calculator to get an idea of what income you can expect from your IRA.
Future Value of IRA at Retirement
Estimated Annual Income
An IRA can play many roles in your retirement strategy, so getting an idea of how much income it can generate is a great first step. You might be surprised to learn more about the versatility of an IRA.
Once you reach age 73, you must begin taking required minimum distributions from a traditional IRA in most circumstances. Withdrawals from traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.
This is a hypothetical example used for illustrative purposes only. Your Expected Pre-Retirement Annual Rate of Return and Expected Post-Retirement Annual Rate of Return will vary over time. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change.
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