Roth IRA Calculator
Estimate tax-free retirement growth with our Roth IRA Calculator. Enter your current Roth IRA balance, annual contribution, expected return, and a simple tax-rate comparison to project future Roth IRA value and contrast it with a simplified traditional IRA after-tax outcome. Perfect for retirement contribution planning, Roth-vs-traditional IRA comparison, and long-term tax-diversification decisions. The calculator shows projected Roth balance, total contributions, investment growth, and the simplified tax-free advantage of Roth treatment. All calculations happen instantly in your browser with no data storage.
How it works: Enter your current Roth IRA balance, annual contribution, expected return, and a simple tax-rate comparison. The calculator projects long-term Roth IRA growth and contrasts that tax-free value with a simplified after-tax traditional IRA outcome.
What Is a Roth IRA Calculator?
A Roth IRA calculator estimates the tax-free balance you'll accumulate by retirement based on your starting balance, annual contribution, expected return rate, and years until retirement. Unlike a Traditional IRA, Roth IRA contributions are made with after-tax dollars — meaning every dollar of growth and every dollar of qualified withdrawal is 100% tax-free. For a 30-year-old contributing $7,000/year at 7% for 35 years, the Roth IRA grows to approximately $1,038,000 — and all of it comes out tax-free in retirement.
How to Use This Roth IRA Calculator
Enter your current Roth IRA balance (or $0 if starting fresh), annual contribution (up to $7,000 in 2024, $8,000 if 50+), expected annual return, and years until retirement. The calculator shows your tax-free balance at retirement, total contributions, and total tax-free growth. Compare this to the Traditional IRA result to see which is better for your tax situation.
Worked Example: Sara Starts a Roth IRA at 28
Sara, 28, opens a Roth IRA with $5,000 and contributes $6,500/year ($541/month) for 37 years, earning 7% annually.
Tax-free Roth balance at 65: ~$1,180,000
Total contributed: $245,500 | Tax-free growth: $934,500
Equivalent Traditional IRA at 22% tax rate on withdrawal: ~$920,000 after-tax
Roth IRA advantage: $260,000 more in spendable retirement income
Roth IRA vs. Traditional IRA — Full Comparison
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Contribution limit (2024) | $7,000 ($8,000 if 50+) | $7,000 ($8,000 if 50+) |
| Tax on contributions | After-tax (no deduction) | Pre-tax (deductible if eligible) |
| Tax on growth | Tax-free | Tax-deferred |
| Tax on qualified withdrawals | Tax-free | Ordinary income tax |
| RMDs | None during lifetime | Required at age 73 |
| Income limit (2024 single) | Phase-out $146k–$161k | No limit (deductibility varies) |
| Early withdrawal of contributions | Penalty-free anytime | Penalized (10% + tax) |
| Best for | Expect higher tax rate in retirement | Expect lower tax rate in retirement |
2024 Roth IRA Contribution Limits & Income Phase-Outs
The 2024 Roth IRA contribution limit is $7,000 ($8,000 if you're 50 or older). But if your modified adjusted gross income (MAGI) exceeds the phase-out range, your contribution limit is reduced. For single filers: phase-out begins at $146,000 and you are completely ineligible above $161,000. For married filing jointly: phase-out between $230,000–$240,000. Above these limits, use the backdoor Roth IRA strategy: contribute to a non-deductible Traditional IRA and immediately convert to Roth.
Tips for Maximizing Your Roth IRA
Contribute as early in the calendar year as possible — January contributions get a full 12 extra months of tax-free compounding vs. December contributions. If you have a Roth 401k available at work, contribute enough to get the full employer match there first (since employer match goes into a traditional 401k), then max your Roth IRA. Young earners in the 10–22% bracket should almost always prioritize Roth over Traditional — locking in today's low rate on money that will compound for decades tax-free is extremely powerful. Roth IRA contributions (not earnings) can be withdrawn penalty-free at any time, making it also a secondary emergency fund if needed.
Frequently Asked Questions About Roth IRAs
What is the Roth IRA income limit for 2024?
Single filers: contributions phase out between $146,000–$161,000 MAGI. Married filing jointly: phase-out between $230,000–$240,000. Above $161,000 single / $240,000 MFJ, you cannot contribute directly. Use the backdoor Roth strategy instead.
Can I withdraw Roth IRA money early?
Contributions (not earnings) can be withdrawn any time without penalty or tax. Earnings require you to be 59½ AND have had the Roth open for at least 5 years for tax-free withdrawal. Early earnings withdrawal incurs income tax plus 10% penalty, with exceptions for first home purchase, disability, etc.
Is a Roth IRA better than a 401k?
They serve different purposes. A 401k (especially with employer match) should be funded at least to the match first. Then max a Roth IRA for tax diversification and flexibility. If your 401k offers a Roth 401k option, you can get both benefits in one account. The ideal is: 401k match → Roth IRA max → remaining 401k.
What happens to a Roth IRA at death?
Inherited Roth IRAs are tax-free to beneficiaries on qualified distributions. Under SECURE 2.0, most non-spouse beneficiaries must empty the account within 10 years. Spouses can roll the inherited Roth into their own Roth IRA with no changes.
What is a backdoor Roth IRA?
If your income exceeds the Roth IRA direct contribution limit, you can: 1) Contribute to a non-deductible Traditional IRA (no income limit), 2) Convert it to a Roth IRA. This is the backdoor Roth. The pro-rata rule applies if you have other pre-tax IRA funds — consult a tax advisor.
How do I choose between Roth and Traditional 401k?
Same logic as IRA: if you expect higher taxes in retirement, Roth is better. Most young earners in the 12–22% bracket should choose Roth. High earners in 32%+ bracket may prefer Traditional now. A useful hack: split contributions 50/50 between Roth and Traditional for tax diversification in retirement.