Roth IRA Calculator
Project your tax-free Roth IRA growth using 2026 IRS limits and a built-in MAGI eligibility check. Roth contributions don't reduce current taxes, but earnings and qualified withdrawals after age 59½ are 100% federal-tax-free. The calculator also compares Roth vs Traditional IRA to show whether paying taxes now or later is the better deal for you.
Inputs Explained
- Current Age: Used to apply the 50+ catch-up and the 5-year/age-59½ qualified-withdrawal rule.
- Retirement Age: When you'll start drawing from the account.
- Current Balance: Existing Roth IRA balance at the start.
- Annual Contribution: Up to $7,000 ($8,000 if 50+); auto-capped at your eligible amount based on MAGI.
- Annual Return: Expected portfolio return; default 7% real-return reference for diversified equities.
- Filing Status: Single, MFJ, MFS, HoH — drives the MAGI phase-out range.
- MAGI: Modified Adjusted Gross Income — used to test contribution eligibility (above the upper phase-out, $0 contribution allowed).
- Marginal Tax Rate: Your top federal bracket — used in the Traditional vs Roth comparison.
How it Works
Annual contributions cap at the IRS limit and the eligible amount given MAGI. Balance compounds at balance × (1 + r) + contribution × (1 + r/2). The Traditional IRA comparison assumes you invest the income-tax savings from a Traditional contribution at the same return; if your withdrawal-era tax rate equals your current rate, the two strategies break even. If retirement-era rates will be lower, Traditional wins; if higher, Roth wins.
The Formula
Eligible_Contribution = max(0, Limit × (Upper − MAGI) / (Upper − Lower)) if Lower ≤ MAGI ≤ Upper
= Limit if MAGI < Lower
= 0 if MAGI > Upper
FV_Roth = balance × (1+r)^n + contribution × [((1+r)^n − 1) / r]
FV_Traditional_post-tax = FV_pretax × (1 − marginal_rate_at_retirement)Last reviewed: May 2026
Roth IRA Calculator
2026 limits, MAGI eligibility, Traditional comparison
Frequently Asked Questions
In 2024, Roth IRA contribution limit is $7,000 ($8,000 if age 50+). Contributions are after-tax — no immediate deduction. But qualified withdrawals (after age 59½ and 5+ years of account ownership) are completely tax-free, including all gains. Income limits apply: full contribution allowed if Modified AGI is below $146,000 single / $230,000 married filing jointly (2024). Phase-out ranges above. High earners can use "backdoor Roth" — contribute to traditional IRA, then convert. The calculator simulates Roth growth and tax-free retirement withdrawals.
Roth IRA contributions are after-tax, so all growth and qualified withdrawals are tax-free. Example: contribute $7,000/year for 30 years at 8% returns — total contributed $210,000, but corpus grows to roughly $850,000. Every rupee of that $640,000 gain is tax-free at withdrawal. Compare to a traditional IRA: same growth, but withdrawals are taxed as income. If your retirement tax rate is similar to today's, Roth wins for the tax-free growth. If retirement bracket will be much lower, traditional may edge it. The calculator compares both scenarios.
For 2024: full Roth IRA contribution allowed if Modified AGI is under $146,000 (single) or $230,000 (married filing jointly). Phase-out ranges: $146,000-$161,000 (single) and $230,000-$240,000 (married). Above the upper limit, no direct contribution allowed. High earners can do a "backdoor Roth": contribute to traditional IRA (no income limit on contributions) then immediately convert to Roth. Watch the pro-rata rule if you have other traditional IRA balances. Spousal Roth IRA also works for non-working spouses. The calculator handles income-based limits and conversions.
Roth uses after-tax money but grows tax-free; Traditional uses pre-tax money (immediate deduction) but withdrawals are taxed. The right choice depends on tax bracket comparison: now vs retirement. If you expect retirement bracket to be similar or higher, Roth is better — pay tax now at lower rate, withdraw tax-free later. If retirement bracket will be much lower (e.g., currently 32%, retirement 22%), Traditional saves more. Most younger workers benefit from Roth. Older workers in peak earning years often prefer Traditional. Many do a mix for flexibility. The calculator compares both with personalized inputs.
Depends on contribution amount, growth rate, and time horizon. Maximum contribution ($7,000 in 2024) for 30 years at 8% returns grows to roughly $850,000 — entirely tax-free. At 9%, it's about $1.04 million. Even modest contributions grow substantially: $3,000/year for 35 years at 8% = $516,000. Inflation adjustments: contribution limits typically rise yearly with inflation, so corpus could be larger if you keep maxing. Tax-free withdrawals are extraordinarily valuable in retirement, especially in high-tax states. The calculator projects Roth IRA growth at various contribution and return scenarios.
Yes, you can contribute to both — they have separate limits. 2024 limits: 401(k) $23,000 + Roth IRA $7,000 = $30,000 total possible contributions ($38,500 with both catch-ups at 50+). Roth IRA has income limits; 401(k) doesn't. Roth 401(k) (if your employer offers) doesn't have income limits but counts toward the 401(k) elective deferral limit. Maxing both 401(k) and Roth IRA is a powerful retirement strategy for those who can afford it. Always capture full 401(k) match first, then Roth IRA, then back to 401(k) for additional savings. The calculator handles combined contributions.
Excess Roth IRA contributions face a 6% annual excise tax on the over-contribution, recurring each year until corrected. Solutions: (1) Withdraw the excess plus any earnings before the tax filing deadline — earnings are taxable but no penalty. (2) Recharacterize to a Traditional IRA before the deadline — no penalty but loses Roth benefits. (3) Apply the excess to next year's contribution if you'll have room. Don't ignore — the 6% tax compounds. The "backdoor Roth" approach uses Traditional IRA + conversion to bypass income limits. Consult a tax advisor for cleanups. The calculator can flag excess scenarios.
Understanding the Roth IRA Calculator
Worked Example
Carlos, age 28, single, MAGI $95,000 (below phase-out). Contributes $7,000/yr to a Roth IRA, expects 7% return, retires at 65.
- Years of compounding: 37
- Total contributions: $259,000
- Final balance: ~$1,150,000
- Tax-free growth: ~$890,000
- If withdrawn over 30 years at 4%: ~$46,000/yr — entirely federal-tax-free
Comparison Table
| Years | $7k/yr at 5% | $7k/yr at 7% | $7k/yr at 9% |
|---|---|---|---|
| 10 | $92,500 | $103,500 | $116,000 |
| 20 | $243,000 | $307,000 | $390,000 |
| 30 | $487,000 | $707,000 | $1,040,000 |
| 40 | $885,000 | $1,495,000 | $2,560,000 |
Use Cases
- Early career planning: max Roth from your 20s when your tax rate is low.
- Side income: use a spousal Roth IRA if one spouse doesn't work but the other does.
- Tax diversification: hold both Roth and Traditional to flex withdrawal taxes in retirement.
- Backdoor strategy: high earners convert non-deductible Traditional to Roth annually.
Glossary
- MAGI
- Modified Adjusted Gross Income — AGI plus several addbacks. Determines Roth IRA contribution eligibility.
- 5-year rule
- Earnings withdrawn from a Roth IRA are tax-free only if the account has been open at least 5 tax years.
- Qualified withdrawal
- A withdrawal that meets both the 5-year and the age-59½ (or other qualifying-event) tests; fully tax-free.
- Backdoor Roth
- Contributing to non-deductible Traditional IRA and converting to Roth — bypasses the income limit.
- RMD
- Required Minimum Distribution — annual mandatory withdrawal starting age 73 for Traditional accounts; Roth IRA has none.
Sources & References
- IRS Roth IRA — Official IRS rules, contribution limits, and qualified-distribution criteria.
- IRS 2026 Roth Limits — Phase-out ranges and contribution limits for 2026.
- CFPB IRA Guide — Plain-language explanation of IRAs from the CFPB.