💎 Roth IRA Calculator
Calculate how much your Roth IRA will grow tax-free by retirement. See the advantage of tax-free withdrawals vs traditional IRAs.
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Frequently Asked Questions
What is a Roth IRA?
A Roth IRA is a retirement account where you contribute after-tax money, but all withdrawals in retirement are tax-free. Unlike traditional IRAs, you pay taxes now but never pay taxes on growth or withdrawals. Its ideal for people who expect to be in a higher tax bracket in retirement.
How much can I contribute to a Roth IRA?
$6,500/year if under 50, $7,500/year if 50+ (2024 limits). However, income limits apply: phase-out starts at $138,000 (single) or $218,000 (married). High earners can use the "backdoor Roth IRA" strategy to contribute indirectly.
Roth IRA vs Traditional IRA?
Traditional IRA: Tax deduction now, pay taxes on withdrawals later. Roth IRA: No deduction now, tax-free withdrawals later. Choose Roth if you expect higher future tax rates, are young with time for growth, or want tax-free retirement income.
When can I withdraw from a Roth IRA?
You can withdraw contributions (not earnings) anytime tax-free and penalty-free. For earnings, wait until 59½ and account is 5+ years old to avoid taxes and penalties. Exceptions exist for first home ($10k), education, and certain hardships.
Should I max out my Roth IRA?
Yes, if possible! Prioritize: (1) 401(k) match, (2) Max Roth IRA ($6,500), (3) Max 401(k) ($23,000), (4) Taxable brokerage. Roth IRAs have more investment options than 401(k)s and offer tax-free growth - one of the best retirement vehicles available.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.