Roth IRA Calculator
Project your tax-free retirement balance and the tax you save versus an ordinary account.
Your Roth IRA
Balance composition
The most tax-efficient retirement account
Decades of tax-free compounding is the Roth IRA's superpower. See what consistent contributions could grow into — and the tax it shelters.
Tax-free growth
Every dollar of growth in a Roth IRA is withdrawn tax-free in retirement. The calculator shows how large that tax-free portion becomes over decades of compounding.
2026 limits built in
Contributions are capped at $7,500, or $8,600 with the age-50 catch-up, before any MAGI phase-out.
Tax-saving estimate
See an estimate of the tax you avoid versus holding the same investments in an ordinary taxable account, illustrating the Roth advantage.
Retirement income
Translates your final balance into a monthly income using the 4% rule, turning an abstract number into real spending power.
Contribution vs growth
A clear breakdown shows how much of your balance is money you put in versus tax-free growth — a ratio that flips dramatically over time.
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Who uses this calculator
Young professionals
Lock in today's low tax rate and let decades of tax-free compounding work in your favor.
Roth vs traditional
Weigh the tax-free Roth against an upfront-deduction account before choosing where to save.
Maxing out
See what contributing the full $7,500 a year builds versus a smaller amount.
Retirement planning
Estimate tax-free retirement income alongside Social Security and a 401(k).
Frequently Asked Questions
What is a Roth IRA?
A Roth IRA is an individual retirement account funded with after-tax dollars. You get no tax deduction when you contribute, but the money grows completely tax-free and qualified withdrawals in retirement — including all the investment growth — are never taxed. It is the mirror image of a traditional IRA or 401(k), where you deduct contributions now but pay tax on withdrawals later.
What are the 2026 Roth IRA contribution limits?
For 2026, the combined traditional and Roth IRA limit is $7,500, plus a $1,100 catch-up from age 50, subject to earned income and Roth MAGI limits.
Are there income limits for a Roth IRA?
Yes. For 2026, direct Roth contributions phase out at MAGI of $153,000–$168,000 for single/head-of-household filers and $242,000–$252,000 for married couples filing jointly. This projection caps the annual dollar limit but does not determine MAGI eligibility.
Roth IRA or traditional / 401(k) — which is better?
The core question is whether your tax rate is higher now or in retirement. If you expect to be in a higher bracket later (common for younger or lower-income savers), the Roth wins because you lock in today's lower rate and withdraw tax-free. If you are a high earner now expecting lower income in retirement, a traditional account's upfront deduction may win. Many people hold both to diversify their future tax exposure.
When can I withdraw from a Roth IRA tax-free?
Qualified, fully tax-free withdrawals require you to be at least 59½ and to have had the account open for at least five years. A valuable feature: you can withdraw your own contributions (not the growth) at any time, tax- and penalty-free, because you already paid tax on them. This makes the Roth more flexible than most retirement accounts, though tapping it early undercuts the compounding.
How is the tax saving estimated?
In an ordinary taxable account, your investment growth would eventually be taxed. In a Roth IRA, that same growth is withdrawn tax-free. The calculator estimates the saving as your total growth multiplied by your tax rate — a simplified figure that illustrates the Roth advantage. Actual savings depend on capital-gains versus income tax treatment and your specific situation.
Understanding the Roth IRA
The Roth IRA is one of the most powerful wealth-building accounts available to American savers, precisely because of one feature: tax-free growth. You contribute money you have already paid tax on, and in exchange the government never taxes the account again — not the growth, not the withdrawals, ever (provided you follow the rules). Over a multi-decade horizon, that tax-free compounding can be worth a small fortune.
Roth vs traditional: the core trade-off
Every retirement saver faces the same question — pay tax now or pay tax later? A traditional IRA or 401(k) gives you a deduction today and taxes withdrawals in retirement. A Roth does the opposite: no deduction now, but tax-free withdrawals later. The deciding factor is your tax rate now versus in retirement. Younger workers and anyone early in their earning curve usually expect to be in a higher bracket later, which makes locking in today's lower rate through a Roth especially valuable.
The 2026 limits and income phase-outs
For 2026, the IRA contribution limit is $7,500, with a $1,100 age-50 catch-up. Direct Roth eligibility phases out at $153,000–$168,000 of MAGI for single/head-of-household filers and $242,000–$252,000 for married couples filing jointly. Confirm eligibility before contributing.
Flexibility most retirement accounts lack
Because you have already paid tax on your contributions, the IRS lets you withdraw your contributions (but not the earnings) at any age, tax- and penalty-free. This makes a Roth IRA double as a backstop emergency fund in a way a 401(k) cannot. That said, pulling money out early sacrifices the very compounding that makes the account so powerful, so it should be a last resort, not a plan.
No required minimum distributions
Unlike traditional IRAs and 401(k)s, a Roth IRA has no required minimum distributions during the original owner's lifetime. You are never forced to withdraw, so the balance can keep compounding tax-free for as long as you live — and can pass to heirs with favorable tax treatment. This makes the Roth a uniquely effective tool for both retirement income and estate planning.
Where the Roth fits in your plan
A common priority order for US savers is: contribute enough to your 401(k) to capture the full employer match, then max a Roth IRA, then return to maxing the 401(k). The Roth slots in after the free match because it offers tax diversification — having both pre-tax (401(k)) and post-tax (Roth) buckets gives you flexibility to manage your tax bracket in retirement. Even modest, consistent Roth contributions started early can grow into a meaningful tax-free nest egg.