Roth IRA Calculator

Calculate your Roth IRA growth potential and retirement savings with tax-free withdrawals

The Roth IRA Calculator helps you estimate the growth of your after-tax retirement contributions. Unlike traditional IRAs, Roth IRA withdrawals in retirement are completely tax-free, making them an excellent long-term savings vehicle.

What would you like to calculate?

Current Information

Current Age

Current Roth IRA Balance ($)

Annual Gross Income ($)

Filing Status

Contribution Information

Annual Contribution ($)

2024 limit: $7,000

Contribution Frequency

Annual Contribution Increase (%)

Investment Information

Expected Annual Return (%)

Historical stock market average: ~10%

Retirement Age

Penalty-free withdrawals start at age 59½

Advanced Options

Adjust for inflation

Include catch-up contributions (age 50+)

Quick Scenarios

Roth IRA Projection

Enter your information to see Roth IRA projection

How Roth IRAs Work

Roth IRA Basics

After-Tax Contributions: You contribute money that has already been taxed.

Tax-Free Growth: Your investments grow without being taxed on gains.

Tax-Free Withdrawals: Qualified withdrawals in retirement are completely tax-free.

No RMDs: Unlike traditional IRAs, there are no required minimum distributions.

Contribution Access: You can withdraw contributions (not earnings) anytime penalty-free.

2024 Contribution Limits

Under age 50:$7,000

Age 50 and over:$8,000

Income Phase-Out Ranges:

Single:$138,000 - $153,000

Married Joint:$218,000 - $228,000

Roth IRA vs Traditional IRA

Feature	Roth IRA	Traditional IRA
Tax Treatment	After-tax contributions, tax-free withdrawals	Pre-tax contributions, taxed on withdrawals
Income Limits	Yes, phase-out at higher incomes	No income limits for contributions
Required Distributions	None during lifetime	Required at age 73
Early Withdrawal	Contributions anytime, earnings after 59½	10% penalty before 59½ (with exceptions)
Best For	Young savers, those expecting higher tax rates	Current high earners, immediate tax deduction

Example: 25-Year-Old Starting a Roth IRA

Scenario: Young Professional

Assumptions

Current Age:25

Annual Contribution:$6,000

Expected Return:8%

Retirement Age:65

Years Investing:40 years

Results

Total Contributions:$240,000

Investment Growth:$1,358,318

Tax-Free Withdrawals:$1,598,318

Final Balance:$1,598,318

All withdrawals in retirement are tax-free!

Frequently Asked Questions

Can I withdraw money from my Roth IRA before retirement?

Yes, you can withdraw your contributions (the money you put in) at any time without taxes or penalties. However, withdrawing earnings before age 59½ may result in taxes and a 10% penalty, unless you qualify for an exception (first-time home purchase, education expenses, etc.).

What if my income is too high for a Roth IRA?

If your income exceeds the limits, you can consider a "backdoor Roth IRA." This involves contributing to a traditional IRA (with no income limits) and then converting it to a Roth IRA. Consult a tax professional for guidance on this strategy.

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, are young with many years to grow tax-free, or want flexibility with no required distributions. Choose traditional if you want an immediate tax deduction and expect to be in a lower tax bracket in retirement.