Roth IRA Calculator - Calculate Retirement Savings Growth
Free Roth IRA calculator to project your retirement savings growth, contribution limits, and tax-free earnings
Roth IRA Calculator
Roth IRA Projections
What is a Roth IRA?
A Roth IRA is a retirement savings account that offers tax-free growth and tax-free withdrawals in retirement. Unlike traditional IRAs, Roth IRAs are funded with after-tax dollars, meaning you don't get an upfront tax deduction.
Key advantages of Roth IRAs include:
- Tax-free growth - All investment earnings grow tax-free
- Tax-free withdrawals - Qualified distributions are completely tax-free
- No required minimum distributions - You can keep funds invested as long as you want
- Flexibility - You can withdraw contributions (not earnings) at any time without penalty
Roth IRA Benefits & Advantages
Roth IRAs offer several unique benefits for retirement planning:
Tax-Free Growth
All dividends, interest, and capital gains grow completely tax-free.
No RMDs
Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime.
Roth IRA Contribution Rules & Limits
2024 Contribution Limits
Under age 50: $7,000 annually. Age 50+: $8,000 annually (includes $1,000 catch-up contribution).
Income Limits
Single filers: Full contribution up to $146,000 MAGI, phase-out to $161,000. Married filing jointly: Up to $230,000-$240,000.
How to Use This Roth IRA Calculator
Enter Personal Info
Input your current age, desired retirement age, and current Roth IRA balance
Set Contribution Details
Enter your planned annual contribution and expected rate of return
Factors That Affect Roth IRA Eligibility
Income Limits
Your modified adjusted gross income and tax filing status determine if you can contribute to a Roth IRA.
Age Requirements
You must have earned income to contribute to a Roth IRA. There are no upper age limits for contributions.
Roth IRA Withdrawal Rules & Taxes
- •Contributions: Can be withdrawn anytime tax-free and penalty-free since they've already been taxed.
- •Earnings: Tax-free and penalty-free after age 59½ and 5-year holding period. Early withdrawals may incur taxes and 10% penalty.
Frequently Asked Questions
Common questions about Roth IRAs and retirement planning
What is a Roth IRA?
A Roth IRA is a retirement savings account that allows you to contribute after-tax dollars and enjoy tax-free growth and qualified withdrawals in retirement. Unlike traditional IRAs, Roth IRAs don't provide an upfront tax deduction but offer tax-free income in retirement.
How do I know if I qualify for a Roth IRA?
Your eligibility depends on your income and tax filing status. For 2024, single filers with modified adjusted gross income (MAGI) below $146,000 can contribute the full amount, with phase-outs up to $161,000. Married filing jointly limits are $230,000 to $240,000. Use this calculator to check your specific eligibility.
What are the 2024 Roth IRA contribution limits?
For 2024, you can contribute up to $7,000 annually to a Roth IRA if you're under age 50. If you're 50 or older, you can contribute up to $8,000 (including a $1,000 catch-up contribution). These limits are per person, so married couples can contribute up to $14,000 or $16,000 total.
How does this calculator work?
This calculator projects your Roth IRA's future value by considering your current balance, planned annual contributions, expected rate of return, and time until retirement. It also checks your income eligibility and shows your maximum allowable contribution based on current IRS rules.
What's the difference between Roth IRA and traditional IRA?
Roth IRAs use after-tax contributions but offer tax-free growth and withdrawals, while traditional IRAs provide upfront tax deductions but require paying taxes on withdrawals in retirement. Roth IRAs are generally better for those who expect to be in a higher tax bracket during retirement.
Can I withdraw money from my Roth IRA before retirement?
You can withdraw your original contributions (but not earnings) at any time without taxes or penalties. For earnings, you must be 59½ or older and have had the account for at least 5 years to avoid taxes and penalties. There are exceptions for first-time home purchases and qualified education expenses.
Should I max out my Roth IRA every year?
Contributing the maximum amount to your Roth IRA is generally recommended if you can afford it, especially if you're in a lower tax bracket now than you expect to be in retirement. The tax-free growth and flexibility make Roth IRAs valuable retirement savings vehicles.
What happens if my income is too high for a Roth IRA?
If your income exceeds the Roth IRA limits, you have several options: contribute to a traditional IRA and convert to Roth (backdoor Roth), contribute to a non-deductible traditional IRA, or use other retirement savings vehicles like a 401(k) or taxable brokerage account.