Roth IRA Calculator
Calculate Roth IRA growth, contribution limits, and tax-free retirement income projections.
2026 Roth IRA Contribution Limits
Income Eligibility Check
Growth Assumptions
Balance Breakdown
Roth IRA vs. Taxable Account Comparison
By using a Roth IRA instead of a taxable investment account, you could save approximately $237,940 in taxes over 35 years.
Total at Retirement
$1,108,292
The Power of Tax-Free Growth
Your Roth IRA contributions grow completely tax-free. With $853,292 in tax-free growth, you will never pay a penny in taxes on those gains when you withdraw in retirement. That is money that would otherwise go to the IRS staying in your pocket.
Important Roth IRA Rules
Related Calculators
About This Calculator
A Roth IRA is one of the most powerful retirement savings vehicles available to Americans, offering a unique combination of tax-free growth and tax-free withdrawals that can save you tens or even hundreds of thousands of dollars over your lifetime. Unlike traditional retirement accounts where you pay taxes when you withdraw funds in retirement, a Roth IRA lets you contribute after-tax dollars today and never pay taxes on that money again - including all the investment growth.
The magic of a Roth IRA lies in compound growth working entirely in your favor. When your investments grow year after year without the drag of annual taxes on gains, the compounding effect is amplified dramatically. A $7,000 annual contribution starting at age 25 with 7% average returns could grow to over $1.1 million by age 65 - and every dollar of that would be completely tax-free when withdrawn.
This Roth IRA Calculator helps you project exactly how much your Roth IRA could be worth at retirement, calculates your tax-free growth potential, checks your income eligibility for contributions, and compares the Roth advantage versus taxable investment accounts. Enter your current balance, planned contributions, and expected returns to see year-by-year growth projections and estimated retirement income.
2026 Contribution Limits: You can contribute up to $7,000 per year ($8,000 if you are 50 or older). However, your ability to contribute phases out at higher income levels. This calculator automatically checks your eligibility based on your Modified Adjusted Gross Income (MAGI) and filing status.
Understanding your Roth IRA options is crucial for retirement planning. For a complete retirement picture, explore our 401k Calculator for workplace retirement accounts, our Retirement Calculator for comprehensive planning, or consider whether a Roth Conversion Calculator strategy makes sense for existing traditional IRA funds.
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How to Use the Roth IRA Calculator
- 1Enter your current age and target retirement age to establish your savings timeline and calculate years of tax-free growth.
- 2Input your current Roth IRA balance - this is your starting point for growth projections.
- 3Enter your planned annual contribution amount (the calculator will cap this at IRS limits automatically).
- 4Provide your Modified Adjusted Gross Income (MAGI) and filing status to check your eligibility for Roth IRA contributions and any income-based phase-outs.
- 5Select your expected annual return rate based on your investment allocation (7% is commonly used for balanced portfolios).
- 6Review your projected balance at retirement, total tax-free growth, and estimated monthly retirement income based on the 4% withdrawal rule.
- 7Compare the Roth IRA results with a taxable account to see your tax savings advantage.
- 8Expand the year-by-year growth table to see your balance progression over time and plan contribution timing.
Understanding Roth IRA Basics
A Roth IRA (Individual Retirement Account) is a tax-advantaged retirement savings account that offers unique benefits compared to traditional retirement accounts.
How a Roth IRA Works
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Contributions | After-tax dollars | Pre-tax (deductible) |
| Growth | Tax-free | Tax-deferred |
| Withdrawals in Retirement | Tax-free | Taxed as income |
| Required Minimum Distributions | None during your lifetime | Required starting at age 73 |
Key Benefits of Roth IRAs
Tax-Free Growth: Your investments grow without annual taxation on dividends or capital gains. This allows compound growth to work unimpeded.
Tax-Free Withdrawals: In retirement, qualified withdrawals are 100% tax-free. You will never pay taxes on earnings if you follow the rules.
Contribution Flexibility: You can withdraw your contributions (not earnings) at any time without taxes or penalties.
No RMDs: Unlike traditional IRAs and 401(k)s, Roth IRAs have no required minimum distributions during your lifetime, giving you complete control over your withdrawals.
Estate Planning: Roth IRAs can be passed to heirs who receive tax-free distributions, making them excellent estate planning vehicles.
2026 Roth IRA Contribution Limits
The IRS sets annual limits on how much you can contribute to a Roth IRA. These limits apply to your total contributions across all traditional and Roth IRAs combined.
2026 Contribution Limits
| Age | Annual Limit | Monthly Equivalent |
|---|---|---|
| Under 50 | $7,000 | $583.33 |
| 50 or older | $8,000 | $666.67 |
The extra $1,000 for those 50 and older is called the "catch-up contribution" and helps those nearing retirement accelerate their savings.
Contribution Timing Strategies
Lump Sum Early: Contributing your full amount early in the year gives your money more time in the market. Studies show this outperforms dollar-cost averaging about two-thirds of the time.
Monthly Contributions: Setting up automatic monthly contributions helps ensure you hit the max and takes emotion out of investing.
Backdating Contributions: You can make contributions for the previous tax year until the April tax deadline. For example, you can make 2025 contributions until April 15, 2026.
What Counts as a Contribution
Your contribution limit applies to:
- Direct contributions to Roth IRAs
- Direct contributions to traditional IRAs
- Combined across all IRA accounts
It does NOT include:
- Roth conversions (no limit)
- Rollover contributions
- 401(k) contributions (separate limit)
Roth IRA Income Limits and Phase-Outs
Unlike traditional IRAs where anyone with earned income can contribute, Roth IRA contributions are limited based on your Modified Adjusted Gross Income (MAGI). If you earn too much, your contribution ability phases out or is eliminated entirely.
2026 MAGI Limits for Roth IRA Contributions
| Filing Status | Full Contribution | Phase-Out Range | No Contribution |
|---|---|---|---|
| Single / Head of Household | Under $150,000 | $150,000 - $165,000 | Over $165,000 |
| Married Filing Jointly | Under $236,000 | $236,000 - $246,000 | Over $246,000 |
| Married Filing Separately | N/A | $0 - $10,000 | Over $10,000 |
How the Phase-Out Works
If your MAGI falls within the phase-out range, your contribution limit is reduced proportionally.
Example Calculation:
- Single filer with MAGI of $157,500
- Phase-out range: $150,000 - $165,000 ($15,000 range)
- Amount over start: $7,500
- Reduction: 50% of $7,000 limit = $3,500 reduced contribution allowed
What Is MAGI?
Modified Adjusted Gross Income (MAGI) for Roth IRA purposes is your AGI with certain deductions added back:
- Foreign earned income exclusion
- Foreign housing exclusion
- Student loan interest deduction
- Tuition and fees deduction
For most people, MAGI equals their AGI shown on their tax return.
Options If Over the Income Limit
If your income exceeds the limit, consider:
- Backdoor Roth IRA: Contribute to a traditional IRA (non-deductible) and immediately convert to Roth
- Roth 401(k): No income limits for Roth 401(k) contributions through your employer
- Mega Backdoor Roth: If your 401(k) allows after-tax contributions and in-plan conversions
Roth IRA vs Traditional IRA Comparison
Choosing between a Roth IRA and Traditional IRA depends on your current tax situation, expected future taxes, and personal preferences.
Head-to-Head Comparison
| Factor | Roth IRA | Traditional IRA |
|---|---|---|
| Tax benefit timing | Retirement (tax-free withdrawals) | Now (tax deduction) |
| Best for tax bracket | Lower now, higher later | Higher now, lower later |
| Income limits | Yes, strict limits | No limits (deductibility may be limited) |
| RMDs | None | Required at age 73 |
| Early withdrawal | Contributions anytime, penalty-free | 10% penalty before 59.5 |
| Best for young workers | Usually yes | Depends on situation |
When to Choose Roth IRA
You should likely choose Roth if:
- You are in a low tax bracket now (early career, lower income years)
- You expect to be in a higher tax bracket in retirement
- You want tax-free income flexibility in retirement
- You want to leave tax-free money to heirs
- You might need access to contributions before retirement
- You are concerned about future tax rate increases
When to Choose Traditional IRA
Traditional IRA may be better if:
- You are in a high tax bracket now and expect lower taxes in retirement
- You need the tax deduction to reduce current taxable income
- You want to lower your AGI for other benefits (student loan payments, ACA subsidies)
- You cannot contribute to a Roth due to income limits
The Hedge Strategy
Many financial advisors recommend having both Roth and traditional accounts to provide tax diversification in retirement. This gives you flexibility to manage your taxable income year by year.
Roth IRA Withdrawal Rules and 5-Year Rule
Understanding Roth IRA withdrawal rules is crucial to maximizing the tax benefits without incurring penalties.
Contribution Withdrawals
Contributions can be withdrawn at any time:
- No taxes
- No penalties
- No questions asked
- Order of withdrawals: contributions first, then conversions, then earnings
Qualified Distributions (Tax and Penalty-Free)
To withdraw earnings completely tax and penalty-free, your distribution must be "qualified." This requires:
- Age requirement: You are 59.5 or older
- 5-year rule: Your first Roth IRA contribution was at least 5 years ago
Both conditions must be met for tax-free earnings withdrawals.
The 5-Year Rule Explained
| Scenario | 5-Year Clock Starts |
|---|---|
| Regular contributions | January 1 of the year of first contribution |
| Conversions from Traditional | January 1 of conversion year (separate clock per conversion) |
| Inherited Roth IRA | Based on original owner`s 5-year clock |
Example:
- First contribution: March 2024
- 5-year clock starts: January 1, 2024
- 5-year clock ends: January 1, 2029
- Qualified distributions available: After January 1, 2029 AND age 59.5
Early Withdrawal Exceptions
You can withdraw earnings before 59.5 without the 10% penalty (but still owe taxes) for:
- First-time home purchase (up to $10,000 lifetime)
- Qualified education expenses
- Disability
- Medical expenses exceeding 7.5% of AGI
- Health insurance premiums while unemployed
Roth IRA Withdrawal Order
- Regular contributions (always tax and penalty-free)
- Conversion contributions (in FIFO order)
- Earnings (subject to rules above)
Backdoor Roth IRA Strategy
The Backdoor Roth IRA is a legal strategy that allows high-income earners who exceed Roth IRA income limits to still get money into a Roth IRA.
How the Backdoor Roth Works
- Contribute to Traditional IRA: Make a non-deductible contribution to a traditional IRA (no income limits for non-deductible contributions)
- Convert to Roth IRA: Immediately convert the traditional IRA to a Roth IRA
- Pay minimal taxes: Since the contribution was non-deductible, you only pay taxes on any earnings during the brief time in the traditional IRA
Step-by-Step Process
| Step | Action | Tax Implication |
|---|---|---|
| 1 | Contribute $7,000 to Traditional IRA | No deduction taken |
| 2 | Wait 1-2 days for funds to settle | Minimal earnings |
| 3 | Convert entire balance to Roth IRA | Taxes only on earnings |
| 4 | File Form 8606 with tax return | Documents non-deductible basis |
The Pro-Rata Rule Warning
If you have existing pre-tax money in ANY traditional IRA (including SEP or SIMPLE IRAs), the pro-rata rule applies to conversions:
Example with existing IRA:
- Existing Traditional IRA: $93,000 (pre-tax)
- New non-deductible contribution: $7,000
- Total IRA balance: $100,000
- Taxable portion of conversion: 93% ($93,000/$100,000)
To avoid this, you can:
- Roll existing traditional IRA into a 401(k) before converting
- Convert everything to Roth (pay taxes on pre-tax amounts)
- Wait until you have no pre-tax IRA money
Mega Backdoor Roth
Some 401(k) plans allow an even larger backdoor strategy:
- Make after-tax (not Roth) contributions to 401(k) beyond the $23,500 limit
- Convert those after-tax contributions to Roth 401(k) or Roth IRA
- Potentially contribute up to $70,000 total (2025 limit) in tax-advantaged accounts
Pro Tips
- 💡Start contributing to a Roth IRA as early as possible - time is the most powerful factor in tax-free compound growth. Even small contributions in your 20s can grow to substantial tax-free wealth.
- 💡Contribute early in the year if possible. Getting your money invested in January rather than December gives you 11 extra months of potential growth each year.
- 💡Max out your Roth IRA every year if financially possible. The $7,000 limit ($8,000 if 50+) is a use-it-or-lose-it opportunity that cannot be made up in future years.
- 💡If you exceed income limits, use the Backdoor Roth IRA strategy. It is completely legal and allows high earners to still benefit from tax-free growth.
- 💡Consider converting traditional IRA money to Roth during low-income years (job transitions, early retirement, sabbaticals) when your tax bracket is lower.
- 💡Keep your Roth IRA invested in high-growth assets like stock index funds. Since growth is tax-free, you want maximum appreciation in this account.
- 💡Open your Roth IRA as soon as possible to start the 5-year clock, even if you can only contribute a small amount initially.
- 💡Use your Roth IRA as a last-resort emergency fund since contributions can be withdrawn penalty-free - but try not to tap it.
- 💡Designate beneficiaries on your Roth IRA and keep them updated. Roth IRAs pass outside of probate and offer tax-free inheritance to your heirs.
- 💡If married, both spouses should have Roth IRAs. A non-working spouse can contribute based on the working spouse`s income (spousal IRA).
- 💡Do not count on being able to contribute later - income limits may disqualify you as your career progresses. Maximize contributions while eligible.
- 💡Consider a Roth 401(k) if your employer offers one - there are no income limits, and you can contribute up to $23,500 in 2026 with tax-free growth.
Frequently Asked Questions
The 2026 Roth IRA contribution limit is $7,000 for those under age 50 and $8,000 for those 50 and older (includes a $1,000 catch-up contribution). This limit applies to your total contributions across all traditional and Roth IRAs combined. If you contribute $4,000 to a traditional IRA, you can only contribute $3,000 to a Roth IRA that year (assuming you are under 50). These limits typically increase slightly each year with inflation adjustments.
