Roth IRA Calculator
Project your retirement wealth and visualize the power of tax-free compounding growth with a Roth IRA.
Account Details
Used to calculate potential tax savings.
The Roth Advantage
Unlike a Traditional IRA, contributions to a Roth IRA are made with after-tax dollars, meaning your withdrawals in retirement are 100% tax-free.
What is a Roth IRA?
A **Roth IRA** is a tax-advantaged individual retirement account that allows you to contribute after-tax dollars. The primary benefit is that your money grows tax-free, and you can withdraw it tax-free after age 59½, provided you've held the account for at least five years.
Named after Senator William Roth, these accounts were established in 1997 and have become a favorite for younger investors or those who expect to be in a higher tax bracket when they retire.
Early Withdrawals
Unlike a 401(k) or Traditional IRA, you can withdraw your **contributions** (but not earnings) from a Roth IRA at any time, for any reason, without taxes or penalties.
No RMDs
Roth IRAs do not have Required Minimum Distributions (RMDs) during the owner's lifetime. You can leave the money to grow as long as you want.
Rules and Limits (2026 - 2027)
- Contribution Limit: For 2026, you can contribute up to **$7,000** ($8,000 if you are age 50 or older). In 2027, these limits typically adjust for inflation.
- Income Limits: Your ability to contribute to a Roth IRA "phases out" based on your Modified Adjusted Gross Income (MAGI). For 2026, the phase-out starts at **$146,000** for single filers and **$230,000** for married couples filing jointly.
- Backdoor Roth: If your income exceeds the limits, you may still be able to use a "Backdoor Roth" strategy by contributing to a Traditional IRA and then converting it to a Roth.
Roth vs. Traditional IRA
Roth IRA
- ✅ Tax-free growth & withdrawals
- ✅ No RMDs (keep money in longer)
- ❌ No tax deduction today
Traditional IRA
- ✅ Immediate tax deduction
- ✅ Lower your taxable income today
- ❌ Withdrawals taxed as income
Frequently Asked Questions
Secure Your Retirement
The best time to start was yesterday. The second best time is now. Use our calculator to plan for a tax-free future and watch your wealth compound.