Can I still publish a paper in an IEEE transaction journal after uploading it to the arXiv?
Yes you can. If/when they accept the paper you need to perform the actions as described in:
From https://www.ieee.org/content/dam/ieee-org/ieee/web/org/pubs/author_version_faq.pdf

Can an author post his manuscript on a preprint server such as ArXiv?
Yes. The IEEE recognizes that many authors share their unpublished
manuscripts on public sites. Once manuscripts have been accepted for
publication by IEEE, an author is required to post an IEEE copyright
notice on his preprint. Upon publication, the author must replace the
preprint with either 1) the full citation to the IEEE work with
Digital Object Identifiers (DOI) or a link to the paper’s abstract in
IEEE Xplore, or 2) the accepted version only (not the IEEEpublished
version), including the IEEE copyright notice and full citation, with
a link to the final, published paper in IEEE Xplore

On the author center of IEEE it's restated here, that prior to publication one can share it on ArXiv
http://ieeeauthorcenter.ieee.org/publish-with-ieee/author-education-resources/guidelines-and-policies/policy-posting-your-article/

Prior to Submission to an IEEE Publication
Authors may post their article anywhere at any time, including on preprint servers such as arXiv.org.

Authors seem to get a lot of leeway from IEEE, including reuse of their previously submitted work in new works. Only thing is that your preprint must match the accepted version by IEEE. Not any rough draft or anything.