What this calculator shows you
- Tax-Free Growth
- See the power of never paying taxes on growth
- Contribution Limits
- Track your annual contribution room
- Income Limits
- Check your eligibility based on income
- Retirement Projection
- Estimate your tax-free retirement income
What Makes Roth IRAs Special
Roth IRA contributions are made with after-tax dollars, but all growth and qualified withdrawals are completely tax-free. This means you'll never pay taxes on decades of investment gains. For many people, this tax-free growth makes the Roth IRA the most valuable retirement account available.
2026 Contribution and Income Limits
The 2026 contribution limit is $7,500 ($8,600 if 50+). However, eligibility phases out for single filers with MAGI of $153,000-$168,000 and married filing jointly $242,000-$252,000. If you exceed limits, consider a backdoor Roth IRA strategy.
The Backdoor Roth IRA
High earners can use the "backdoor" strategy: contribute to a traditional IRA (non-deductible), then immediately convert to a Roth IRA. This is legal and widely used. Be aware of the pro-rata rule if you have other traditional IRA balances.
Roth IRA vs Traditional IRA
Choose Roth if: you're young (more time for tax-free growth), expect higher taxes later, want tax diversification, or might need early access (contributions can be withdrawn anytime). Choose traditional if: you're in a high tax bracket now and expect lower taxes in retirement.
Roth IRA Withdrawal Rules
Contributions (not earnings) can be withdrawn anytime tax and penalty-free. Earnings can be withdrawn tax-free after age 59½ if the account has been open 5+ years. Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime.
Questions people ask
Can I have both a Roth IRA and 401(k)?
Yes! Maximize your 401(k) employer match, then contribute to a Roth IRA, then return to the 401(k). The combined contribution limits are separate, allowing significant tax-advantaged savings.
What should I invest in within my Roth IRA?
Put your highest-growth investments in your Roth to maximize tax-free gains. Index funds (S&P 500, total market) are popular choices. Since growth is tax-free, this is the ideal place for stocks and growth-oriented investments.
When can I withdraw from my Roth IRA?
Contributions can be withdrawn anytime. Earnings can be withdrawn tax-free after age 59½ if the account is 5+ years old. Before that, earnings withdrawals may incur taxes and a 10% penalty, with some exceptions.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.