About the Pension Tax Savings Calculator
Contributing to a Traditional IRA or pre-tax 401k reduces your current taxable income, lowering your tax bill. This calculator estimates your federal tax savings based on your marginal tax bracket and contribution amounts, using 2024 IRS limits. It is a quick reference tool — always consult a tax professional for personalized advice.
2024 Key Contribution Limits
The Traditional IRA limit is $7,000 ($8,000 if age 50+) for 2024. The 401k elective deferral limit is $23,000 ($30,500 if age 50+). Pre-tax 401k and deductible IRA contributions both reduce your adjusted gross income, resulting in real tax savings every filing season.
FAQ
The 2024 IRA limit is $7,000 (under 50) or $8,000 (50 and older), combined across Traditional and Roth IRAs. Deductibility phases out at higher incomes if covered by a workplace plan.
Deductible IRA contributions reduce your taxable income dollar-for-dollar. Tax savings equal the deductible amount times your marginal tax rate.
This is an estimate using your marginal rate. Actual savings depend on deductibility phase-outs, state taxes, and other factors. Consult a tax advisor for a precise figure.