Estimate your deductible retirement contributions for common plans.
401(k) (Employee Contribution)
403(b) (Employee Contribution)
SIMPLE IRA (Employee Contribution)
SEP IRA (Employer Contribution – for self-employed/small business)
Traditional IRA (Deductible Contribution)
Solo 401(k) (Employee Contribution)
Solo 401(k) (Employer Contribution)
Yes
No
Estimated Deductible Contribution:
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This calculator provides an estimate for educational purposes only. Contribution limits and deductibility rules can be complex and vary based on individual circumstances and tax law changes. Consult with a qualified tax professional for personalized advice.
Understanding IRS Retirement Contribution Rules
Saving for retirement is a cornerstone of financial security, and the IRS offers significant tax advantages to encourage retirement savings. This calculator helps you estimate deductible contributions to common retirement plans, illustrating how your income and chosen plan type affect your potential tax savings.
Key Retirement Plans and Their Contribution Rules:
401(k) / 403(b) (Employee Contributions): These plans allow employees to contribute a portion of their salary on a pre-tax basis, reducing their current taxable income. The IRS sets annual contribution limits, which are adjusted for inflation. For 2024, the limit for employee contributions is $23,000, with an additional $7,500 catch-up contribution allowed for those aged 50 and over.
SIMPLE IRA (Savings Incentive Match Plan for Employees): This plan is for small businesses (100 or fewer employees). Employees can contribute a percentage of their salary, and employers must either match contributions or contribute a percentage of compensation. For 2024, employee contribution limits are $16,000, with a $3,500 catch-up for those 50+. Employer match is typically 2% of compensation or a 3% match on employee contributions.
SEP IRA (Simplified Employee Pension): Primarily for self-employed individuals and small business owners. Contributions are made by the employer (which can be the self-employed individual themselves) and are tax-deductible for the business. The contribution limit is the lesser of 25% of compensation or $69,000 for 2024.
Traditional IRA (Individual Retirement Arrangement): Individuals can contribute to a Traditional IRA, and contributions may be tax-deductible. The deductibility depends on your income, filing status, and whether you (or your spouse) are covered by a retirement plan at work. For 2024, the maximum contribution is $7,000, with a $1,000 catch-up for those 50+.
Solo 401(k): For self-employed individuals with no employees (other than a spouse). This plan allows for contributions as both an employee and an employer, significantly increasing the potential contribution amount. The employee contribution limit is the same as a regular 401(k) ($23,000 for 2024, plus catch-up), and the employer contribution can be up to 25% of net adjusted self-employment income. The total contribution cannot exceed $69,000 for 2024.
How the Calculator Works:
This calculator applies simplified rules and maximum limits for common scenarios:
401(k)/403(b)/SIMPLE IRA/Solo 401(k) Employee: Calculates contributions up to the IRS annual limit ($23,000 for 401k/403b/Solo 401k employee, $16,000 for SIMPLE IRA employee in 2024), or your gross income if it's lower. It does not account for catch-up contributions or employer matches.
SEP IRA: For self-employed individuals, it calculates the maximum deductible contribution as 25% of net self-employment income, up to the IRS limit ($69,000 for 2024).
Solo 401(k) Employer: Calculates the employer portion as 25% of net adjusted self-employment income. The total contribution (employee + employer) is capped at the overall IRS limit ($69,000 for 2024).
Traditional IRA:
If you are NOT covered by a workplace plan, your contribution is fully deductible up to the IRS limit ($7,000 for 2024, plus catch-up).
If you ARE covered by a workplace plan, deductibility is phased out based on your Modified Adjusted Gross Income (MAGI). This calculator uses your provided AGI for IRA deduction and the workplace coverage status to apply simplified phase-out rules for 2024:
Single filers: Phase-out begins at $77,000 AGI, fully phased out at $87,000 AGI.
Married Filing Jointly: Phase-out begins at $123,000 AGI, fully phased out at $143,000 AGI.
Married Filing Separately: Phase-out begins at $0 AGI, fully phased out at $10,000 AGI.
Note: The calculator uses the "Gross Annual Income" as a proxy for AGI when the specific AGI field isn't filled for Traditional IRA calculations, which may not be accurate for precise calculations. Use the dedicated AGI field for better accuracy.
Why Use This Calculator?
Understanding your potential retirement contribution limits can help you:
Maximize tax benefits by contributing the optimal amount.
Plan your retirement savings strategy more effectively.
Make informed decisions about your financial future.
Remember to consult IRS publications (like Publication 590-A for IRAs and Publication 525 for Taxes on Income from Employer Plans) or a tax professional for the most accurate and up-to-date information.
function calculateContribution() {
var income = parseFloat(document.getElementById('income').value);
var retirementPlan = document.getElementById('retirementPlan').value;
var iraIncome = parseFloat(document.getElementById('iraIncome').value);
var iraCoverage = document.getElementById('iraCoverage').value;
var businessProfit = parseFloat(document.getElementById('businessProfit').value);
var resultValue = '–';
var resultText = 'Please enter valid numbers.';
var MAX_401K_403B_SOLO_EMPLOYEE = 23000; // 2024 limit
var MAX_SIMPLE_IRA_EMPLOYEE = 16000; // 2024 limit
var MAX_IRA_TRADITIONAL = 7000; // 2024 limit
var MAX_OVERALL_SEP_SOLO_EMPLOYER = 69000; // 2024 limit
// Traditional IRA Phase-out ranges for 2024 (MAGI thresholds)
var IRA_PHASE_OUT_SINGLE_START = 77000;
var IRA_PHASE_OUT_SINGLE_END = 87000;
var IRA_PHASE_OUT_MFJ_START = 123000;
var IRA_PHASE_OUT_MFJ_END = 143000;
var IRA_PHASE_OUT_MFS_START = 0;
var IRA_PHASE_OUT_MFS_END = 10000;
if (isNaN(income) || income <= 0) {
resultText = 'Please enter a valid Gross Annual Income.';
} else {
var calculatedContribution = 0;
switch (retirementPlan) {
case '401k':
case '403b':
case 'solo_401k_employee':
calculatedContribution = Math.min(income, MAX_401K_403B_SOLO_EMPLOYEE);
resultText = '$' + calculatedContribution.toFixed(2);
break;
case 'simple_ira':
calculatedContribution = Math.min(income, MAX_SIMPLE_IRA_EMPLOYEE);
resultText = '$' + calculatedContribution.toFixed(2);
break;
case 'sep_ira':
case 'solo_401k_employer':
if (isNaN(businessProfit) || businessProfit <= 0) {
resultText = 'For SEP/Solo 401(k) Employer, please enter valid Net Profit.';
break;
}
// For SEP IRA, limit is lesser of 25% of comp or $69,000.
// For Solo 401k Employer, limit is 25% of net adjusted SE income.
// Simplified calculation: 25% of business profit.
var employerContributionRate = 0.25; // Represents 25% for SEP/Solo 401k Employer calc
var potentialContribution = businessProfit * employerContributionRate;
calculatedContribution = Math.min(potentialContribution, MAX_OVERALL_SEP_SOLO_EMPLOYER);
// Ensure it doesn't exceed overall limit if business profit is very high
calculatedContribution = Math.min(calculatedContribution, MAX_OVERALL_SEP_SOLO_EMPLOYER);
resultText = '$' + calculatedContribution.toFixed(2);
break;
case 'traditional_ira':
var contributionLimit = MAX_IRA_TRADITIONAL;
var effectiveIncomeForIRA = isNaN(iraIncome) ? income : iraIncome; // Use specific AGI if provided, else fallback to income
if (isNaN(effectiveIncomeForIRA) || effectiveIncomeForIRA = phaseOutEnd) {
deductionAmount = 0; // Income too high, no deduction
} else if (effectiveIncomeForIRA <= phaseOutStart) {
deductionAmount = Math.min(effectiveIncomeForIRA, contributionLimit); // Fully deductible up to limit
deductionAmount = Math.min(deductionAmount, contributionLimit);
} else {
// Partial deduction range
var incomeInRange = effectiveIncomeForIRA – phaseOutStart;
var phaseOutRange = phaseOutEnd – phaseOutStart;
var reductionPercentage = incomeInRange / phaseOutRange;
var maxDeductible = Math.min(effectiveIncomeForIRA, contributionLimit);
deductionAmount = maxDeductible * (1 – reductionPercentage);
deductionAmount = Math.min(deductionAmount, contributionLimit);
}
}
calculatedContribution = deductionAmount;
resultText = '$' + calculatedContribution.toFixed(2);
break;
}
if (resultText !== 'Please enter valid numbers.' && resultText !== 'Please enter a valid Income/AGI for IRA calculation.' && resultText !== 'For SEP/Solo 401(k) Employer, please enter valid Net Profit.') {
document.getElementById('result-value').innerText = resultText;
} else {
document.getElementById('result-value').innerText = '–';
alert(resultText); // Show specific error messages
}
}
if (isNaN(calculatedContribution)) {
document.getElementById('result-value').innerText = '–';
}
}
// Show/hide relevant fields based on plan selection
document.getElementById('retirementPlan').addEventListener('change', function() {
var plan = this.value;
document.getElementById('iraIncomeGroup').style.display = 'none';
document.getElementById('iraCoverageGroup').style.display = 'none';
document.getElementById('businessProfitGroup').style.display = 'none';
if (plan === 'traditional_ira') {
document.getElementById('iraIncomeGroup').style.display = 'flex';
document.getElementById('iraCoverageGroup').style.display = 'flex';
} else if (plan === 'sep_ira' || plan === 'solo_401k_employer') {
document.getElementById('businessProfitGroup').style.display = 'flex';
}
});
// Initial call to set visibility on page load
document.addEventListener('DOMContentLoaded', function() {
document.getElementById('retirementPlan').dispatchEvent(new Event('change'));
});