Roth IRA Calculator

See your tax-free retirement growth

Project the balance of your Roth IRA at retirement. Every dollar grows tax-free and comes out tax-free — see what consistent contributions become over decades.

$
$500$1,000,000
%
1%30%
Yr
1 Yr40 Yr
Invested Amount$209,880
Est. Returns$505,512
Total Value$715,392

Why a Roth IRA Is the Crown Jewel of Retirement Accounts

Roth IRAs offer three powerful advantages over Traditional IRAs and most 401(k) plans:

  • Tax-free growth and withdrawals. Once contributed, money grows tax-free forever. Withdrawals in retirement are completely tax-free (no income tax, no capital gains tax).
  • No Required Minimum Distributions. Traditional IRAs and 401(k)s force you to start withdrawing at age 73. Roth IRAs have no RMDs — you can leave it alone and let it compound for your kids if you want.
  • Penalty-free access to contributions. You can withdraw your original contributions at any time without tax or penalty. This makes the Roth a partial emergency fund.

The Power of Maxing for 30 Years

Maxing the $7,000 annual contribution ($583/month) at a 7% return:

  • Total contributed over 30 years: $210,000
  • Total at retirement: $720,000
  • Tax-free growth: $510,000

In a taxable brokerage account, that same $510,000 in growth would owe long-term capital gains tax — at a 15% federal rate plus state, you'd lose $80,000-$100,000 to taxes. The Roth shields all of it.

2026 Roth IRA Rules

  • Contribution limit: $7,000/year ($8,000 if 50+)
  • Income limits (full contribution): MAGI under $146,000 single / $230,000 married
  • Income limits (phase-out): $146,000-$161,000 single / $230,000-$240,000 married
  • Backdoor Roth: high earners can contribute to Traditional IRA then convert to Roth (legal as of 2026)
  • 5-year rule: earnings must stay in the account for 5 years before tax-free withdrawal in retirement

Frequently Asked Questions

What's the 2026 contribution limit?
$7,000 per year if under 50, $8,000 with the catch-up if you're 50+. This is across all IRAs combined (Traditional + Roth).
Who can contribute?
Full contributions if your MAGI is under $146,000 single or $230,000 married for 2026. Above those thresholds, the limit phases out. High earners use the backdoor Roth — contribute to Traditional IRA, then convert.
Roth IRA vs 401(k)?
Order matters: capture full 401(k) match first → max Roth IRA → back to 401(k) up to $23,500. The Roth gives you no RMDs, more investment choice, and tax-free withdrawals — it's strictly more flexible than most 401(k)s.
Can I withdraw early?
Contributions (but not earnings) can be withdrawn anytime with zero tax or penalty. Earnings face a 10% penalty plus tax if withdrawn before 59½ AND before the account is 5 years old (with hardship exceptions).
What if I make too much to contribute directly?
Use the backdoor Roth: contribute (after-tax) to a Traditional IRA, then convert to Roth. There's no income limit on conversions. Watch for the pro-rata rule if you have other Traditional IRA money — talk to a tax pro before executing.

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