Roth IRA Calculator
Roth IRA Calculator projects your tax-free retirement savings based on your age, annual contributions, current balance, and expected investment return. See how compound growth turns consistent contributions into substantial wealth.
Your Roth IRA Details
Tax-Free Advantage
Balance Growth Over Time
Year-by-year stacked area chart showing your contributions (teal) and investment growth (purple).
Year-by-Year Breakdown
Detailed annual progression of your Roth IRA. Years marked with * indicate catch-up contributions (age 50+).
| Year | Age | Contribution | Growth | Total Contributed | Balance |
|---|
How Roth IRAs Work
A Roth IRA is a retirement savings account that lets your money grow tax-free. Unlike a Traditional IRA where you get a tax deduction now but pay taxes on withdrawals, a Roth IRA works in reverse: you contribute after-tax dollars, but qualified withdrawals in retirement are completely tax-free -- including all the investment growth.
Tax-Free Growth
Once money is in your Roth IRA, it grows tax-free forever. You will never pay taxes on qualified withdrawals, no matter how much your investments grow. If you contribute $200,000 over your career and it grows to $1,000,000, the $800,000 in growth is completely tax-free.
Contribution Flexibility
You can withdraw your original contributions at any time without taxes or penalties. This makes the Roth IRA more flexible than other retirement accounts. However, withdrawing earnings before age 59 1/2 may trigger taxes and a 10% penalty.
No Required Distributions
Unlike Traditional IRAs and 401(k)s, Roth IRAs have no required minimum distributions (RMDs) during your lifetime. You can let your money continue to grow tax-free for as long as you want, or leave it to heirs.
The 5-Year Rule
To withdraw earnings tax-free, your Roth IRA must be open for at least 5 years and you must be at least 59 1/2. The 5-year clock starts January 1 of the year of your first contribution. This applies to both regular contributions and conversions.
2024 Roth IRA Contribution Limits
The IRS sets annual limits on how much you can contribute to your Roth IRA. These limits depend on your age and income.
| Category | 2024 Limit | Details |
|---|---|---|
| Under age 50 | $7,000 | Standard annual contribution limit |
| Age 50 and older | $8,000 | Includes $1,000 catch-up contribution |
Income Limits for Roth IRA Contributions (2024)
Your ability to contribute to a Roth IRA phases out at higher income levels.
| Filing Status | Full Contribution | Phase-Out Range | No Contribution |
|---|---|---|---|
| Single / Head of Household | Under $146,000 | $146,000 - $161,000 | Above $161,000 |
| Married Filing Jointly | Under $230,000 | $230,000 - $240,000 | Above $240,000 |
| Married Filing Separately | $0 | $0 - $10,000 | Above $10,000 |
Example: The Power of Starting Early
Person A starts contributing $7,000/year at age 25 and stops at 35 (10 years, $70,000 total).
Person B starts contributing $7,000/year at age 35 and continues to 65 (30 years, $210,000 total).
At 7% annual return, Person A ends up with more money at age 65 despite contributing $140,000 less, because compound growth had more time to work.
Roth IRA vs Traditional IRA
Understanding the key differences helps you choose the right account for your situation.
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax on Contributions | After-tax (no deduction) | May be tax-deductible |
| Tax on Withdrawals | Tax-free (qualified) | Taxed as ordinary income |
| Required Minimum Distributions | None during owner's lifetime | Required starting at age 73 |
| Income Limits | Yes, phase-out at high income | No (but deduction may be limited) |
| Early Withdrawal | Contributions: anytime, tax-free | 10% penalty + taxes before 59 1/2 |
| Best For | Expect higher taxes in retirement | Expect lower taxes in retirement |
Frequently Asked Questions
Can I have both a Roth IRA and a 401(k)?
Yes. A Roth IRA and a 401(k) are separate accounts with separate contribution limits. You can max out both. Many financial advisors recommend contributing enough to your 401(k) to get the full employer match, then maxing out your Roth IRA, then contributing more to your 401(k).
What if my income is too high for a Roth IRA?
You can use a "backdoor Roth IRA" strategy: contribute to a Traditional IRA (non-deductible) and then convert it to a Roth IRA. This is legal and commonly used by high earners. Be aware of the pro-rata rule if you have existing Traditional IRA balances.
What should I invest in within my Roth IRA?
A Roth IRA is just the account type -- you choose what to invest in. Popular choices include low-cost index funds, target-date funds, and diversified ETFs. Since growth is tax-free, high-growth investments benefit most from being in a Roth IRA.
When is the contribution deadline?
You can contribute to your Roth IRA for a given tax year until the tax filing deadline of the following year (typically April 15). For example, you can make 2024 contributions until April 15, 2025. You can contribute in a lump sum or spread it throughout the year.
Privacy & Limitations
- All calculations run entirely in your browser -- nothing is sent to any server.
- Results are estimates for planning purposes and should not replace professional financial advice.
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Roth IRA Calculator FAQ
What is a Roth IRA?
A Roth IRA (Individual Retirement Account) is a tax-advantaged retirement savings account. You contribute after-tax dollars, meaning you pay taxes on the money before it goes in, but qualified withdrawals in retirement are completely tax-free -- including all investment growth. This makes it one of the most powerful retirement savings vehicles available.
What is the Roth IRA contribution limit for 2024?
For 2024, the Roth IRA contribution limit is $7,000 if you are under age 50. If you are 50 or older, you can make an additional $1,000 catch-up contribution for a total of $8,000 per year. These limits apply across all your IRA accounts combined (Traditional and Roth).
What are the Roth IRA income limits?
For 2024, single filers can contribute the full amount if their modified adjusted gross income (MAGI) is below $146,000. Contributions phase out between $146,000 and $161,000. For married filing jointly, the full contribution is available below $230,000 MAGI, with phase-out between $230,000 and $240,000. Above these limits, you cannot contribute directly to a Roth IRA.
What is the difference between a Roth IRA and Traditional IRA?
The key difference is when you pay taxes. Traditional IRA contributions may be tax-deductible now, but withdrawals in retirement are taxed as income. Roth IRA contributions are made with after-tax money, but qualified withdrawals are completely tax-free. Roth IRAs also have no required minimum distributions (RMDs) during the owner's lifetime, offering more flexibility.
Can I withdraw from my Roth IRA before retirement?
You can withdraw your original contributions (not earnings) from a Roth IRA at any time without taxes or penalties. For earnings, you generally need to be at least 59 1/2 and have held the account for at least 5 years to withdraw tax-free. Early withdrawal of earnings may incur a 10% penalty plus income tax, though some exceptions apply.
What is the Roth IRA 5-year rule?
The 5-year rule states that you must wait at least 5 years from your first Roth IRA contribution before you can withdraw earnings tax-free, even if you are over 59 1/2. The clock starts on January 1 of the year you make your first contribution. This applies separately to converted funds as well.
Should I choose a Roth IRA or Traditional IRA?
Choose a Roth IRA if you expect to be in a higher tax bracket in retirement, want tax-free withdrawals, or value the flexibility of no RMDs. Choose a Traditional IRA if you want to reduce your taxable income now and expect a lower tax rate in retirement. Younger workers who expect rising incomes often benefit more from Roth contributions.
Does this calculator store my data?
No. All calculations run entirely in your browser using JavaScript. No data is sent to any server, and nothing is stored or tracked.