✦ Tax-Free Growth Forever
Roth IRA Calculator
Project your Roth IRA balance at retirement, see the tax-free advantage over Traditional IRA, and find out how much you can contribute in 2026.
2026 Roth IRA Limits
Contribution Limit$7,000
Catch-Up (50+)$8,000
Phase-Out Starts (Single)$150,000
Phase-Out Starts (MFJ)$236,000
No RMD Required✅
Tax on Withdrawals$0
Roth IRA Details
Your contribution & growth projection
Your Information
$
Annual Contribution
Contributing: $7,000/year (max)
Growth & Tax Assumptions
%
ROTH IRA BALANCE AT RETIREMENT
$1,143,000
At age 65 · 35 years of tax-free growth
🎉 100% Tax-Free — Pay $0 tax in retirement!
$245K
Total Contributed
$898K
Tax-Free Growth
$3,810
Monthly Income (4%)
4.67×
Growth Multiple
💚 Tax-Free Advantage Over Traditional IRA
$5,390/yr
Tax Paid Upfront (Roth)
$171K
Tax Saved at Withdrawal
$171K
Roth Net Advantage
✅ If retirement tax rate equals current rate, Roth and Traditional produce equal after-tax wealth. Roth wins if your tax rate is higher in retirement.
⚖️ Roth IRA vs Traditional IRA Comparison
| Feature | 🟣 Roth IRA | 🔵 Traditional IRA |
|---|
📈 Roth IRA Growth: Contributions vs Tax-Free Earnings
📋 Year-by-Year Roth IRA Schedule
| Age | Contribution | Growth | Year-End Balance | Tax if Trad. IRA |
|---|
Why the Roth IRA Is the Most Powerful Retirement Account
A Roth IRA lets your money grow completely tax-free — you pay taxes on contributions now and never pay taxes on growth or withdrawals in retirement. Our Roth IRA calculator shows your projected balance, the total tax-free advantage over a Traditional IRA, and a year-by-year growth schedule. For a complete retirement strategy, pair with our 401(k) calculator, retirement calculator, and income tax calculator.
✦ Roth IRA Key Benefits
- Tax-free growth: All earnings grow 100% tax-free
- Tax-free withdrawals: No tax in retirement — ever
- No RMDs: No forced withdrawals at age 73 (unlike Traditional)
- Withdraw contributions anytime: Principal is accessible penalty-free
- Estate planning: Tax-free inheritance for beneficiaries
- Flexible: No tax deduction now, but no tax owed later
📊 Roth vs Traditional IRA: Choose Wisely
- Choose Roth if: You expect higher taxes in retirement than now
- Choose Traditional if: You're in a high bracket now, lower in retirement
- Age 20s–30s: Roth almost always wins — decades of tax-free compounding
- Age 50s+: Traditional may be better if income is at peak
- Best strategy: Contribute to both for tax diversification
- If tax rates are equal, Roth and Traditional produce identical after-tax wealth
💰 2026 Contribution & Income Limits
- Under age 50: $7,000/year maximum
- Age 50+: $8,000/year (catch-up)
- Single phase-out: $150,000 – $165,000 MAGI
- Married filing jointly: $236,000 – $246,000 MAGI
- Over limit? Backdoor Roth conversion may still work
- Must have earned income ≥ contribution amount
🔄 Roth Conversion Strategy
Convert Traditional IRA funds to Roth IRA to lock in today's tax rates:
- Pay income tax on converted amount now
- All future growth and withdrawals are tax-free
- Best in low-income years (job change, early retirement)
- Convert up to the top of your current tax bracket
- No income limit for conversions (unlike contributions)
- 5-year rule applies to each conversion separately
Frequently Asked Questions
Contribute as much as you can up to the annual limit — $7,000 in 2026 ($8,000 if 50+). At a minimum, contribute enough to maximize your Roth IRA after fully capturing any employer 401(k) match. The earlier you max out, the more tax-free compounding you benefit from. At $7,000/year for 35 years at 7% returns, you accumulate over $1 million of completely tax-free money. Use our Roth IRA calculator above to see your specific projection.
Roth IRA contributions (not earnings) can always be withdrawn tax-free and penalty-free at any time — there's no lockup on the money you put in. Earnings (growth) are subject to the 5-year rule and age 59½ requirement for penalty-free withdrawal. Exceptions exist for first home purchase (up to $10,000), disability, and death. This flexibility makes the Roth IRA a powerful emergency fund supplement for disciplined savers — though ideally you let the growth compound untouched until retirement.
In 2026, Roth IRA contributions phase out for single filers with MAGI (Modified Adjusted Gross Income) between $150,000 and $165,000, and for married filing jointly between $236,000 and $246,000. Above those limits, direct Roth contributions aren't allowed. However, the backdoor Roth IRA strategy (make a non-deductible Traditional IRA contribution, then convert it to Roth) is still available with no income limit, though you must handle the pro-rata rule if you have other Traditional IRA funds.
Both serve different roles and you should ideally use both. Priority order: (1) Contribute to 401(k) up to the full employer match — instant 50–100% return; (2) Max out Roth IRA — $7,000/year tax-free forever; (3) Go back and max 401(k) — $23,500 limit. The Roth IRA has advantages over 401(k): no RMDs, tax-free withdrawals, more investment options, contribution access without penalty. The 401(k) wins for employer match and higher contribution limits. Use our 401(k) calculator alongside this one.
No — unlike a Traditional IRA, Roth IRA contributions are NOT tax-deductible. You contribute after-tax dollars now. The benefit is entirely in the future: all growth and qualified withdrawals are completely tax-free. This means your current tax bill is unaffected by Roth IRA contributions. Compare this to a Traditional IRA where contributions may reduce taxable income now but create a taxable event at withdrawal. For most young earners in lower tax brackets, the long-term tax-free compounding far outweighs the near-term deduction.