Roth IRA Calculator

A Roth IRA calculator helps you plan tax-free retirement savings and compare Roth IRA vs Traditional IRA benefits. This Roth IRA calculator includes income eligibility checks and shows the long-term tax advantages of Roth IRAs. Use this Roth IRA calculator to maximize your retirement savings strategy.

Key Roth IRA calculator concepts:

• What is a Roth IRA: A Roth IRA is a retirement account where you pay taxes now to avoid taxes later. You contribute after-tax dollars, but every penny that account grows? Tax-free forever. Plus, your withdrawals in retirement are completely tax-free.
• Roth IRA vs Traditional IRA: Traditional IRA gives you a tax deduction now, but you pay taxes later. Roth IRA requires you to pay taxes now, but provides tax-free growth and withdrawals forever. Which is better depends on whether you expect to be in a higher or lower tax bracket in retirement.
• Contribution limits and eligibility: For 2025, you can contribute $7,000 ($8,000 if age 50+). Income limits apply: Single filers phase out at $150,000-$165,000 MAGI, married filing jointly at $236,000-$246,000 MAGI. High earners can use a backdoor Roth IRA strategy.
• Roth IRA benefits: Tax-free growth and withdrawals, no required minimum distributions (RMDs) during your lifetime, can withdraw contributions anytime without penalty (not earnings), and pass tax-free to heirs.
• When can you withdraw: Contributions can be withdrawn anytime (you already paid taxes). Earnings are tax and penalty-free after age 59.5 and account open 5+ years. Exceptions exist for first home purchase, education expenses, etc.

Using this Roth IRA calculator: Enter your age, income (MAGI), and contribution amount. The Roth IRA calculator will check your eligibility and project your tax-free retirement savings. This Roth IRA calculator also compares Roth IRA vs Traditional IRA to show which option saves you more in taxes based on your current and expected retirement tax rates.