💎 Roth IRA Calculator
Calculate your tax-free retirement savings
2024 limit: $7,000 ($8,000 if 50+)
How to Use This Calculator
Enter Your Age and Retirement Age
Input your current age and target retirement age. This determines how many years you have to contribute to your Roth IRA.
Enter Current Balance and Annual Contribution
Enter your current Roth IRA balance (if any) and your annual contribution amount. The 2024 contribution limit is $7,000 ($8,000 if 50+).
Enter Expected Annual Return
Enter your expected annual return on investments (typically 6-8% for diversified portfolios). This affects how much your Roth IRA will grow over time.
Review Roth IRA Growth Projection
See your projected Roth IRA balance at retirement, total contributions, investment earnings, and tax-free withdrawal amount. Use this to plan your Roth IRA strategy.
Formula
Future Value = Current Balance × (1 + r)^n + (Annual Contribution / 12) × [((1 + r)^n - 1) / r]
Where:
• Current Balance = Existing Roth IRA balance
• Annual Contribution = Yearly contribution (converted to monthly)
• r = Monthly return rate (Annual Rate ÷ 12)
• n = Number of monthly periods (Years × 12)
Example Calculation:
If current balance $0, annual contribution $7,000, return 7%, 40 years:
• Monthly contribution = $7,000 ÷ 12 = $583.33
• Monthly rate = 7% ÷ 12 = 0.5833%
• Future value: ~$1,400,000
• Total contributed: $280,000
• Earnings: ~$1,120,000 (all tax-free!)
About Roth IRA Calculator
A Roth IRA calculator helps you project your tax-free retirement savings. Roth IRAs are individual retirement accounts where you contribute after-tax dollars, and withdrawals in retirement are completely tax-free. This makes Roth IRAs valuable for retirement planning, especially if you expect to be in a higher tax bracket in retirement. Unlike Traditional IRAs, Roth IRAs have no required minimum distributions (RMDs), and you can withdraw contributions penalty-free at any time. This calculator shows you how your Roth IRA will grow over time with regular contributions.
When to Use This Calculator
- Roth IRA Planning: Plan for Roth IRA savings
- Tax-Free Growth: See tax-free retirement savings potential
- Contribution Planning: Determine optimal contribution amount
- Retirement Strategy: Plan your Roth IRA strategy
Understanding Roth IRAs
- After-Tax Contributions: Contributions are made with after-tax dollars
- Tax-Free Growth: Earnings grow tax-free
- Tax-Free Withdrawals: Withdrawals in retirement are tax-free
- No RMDs: No required minimum distributions
- Income Limits: Contribution limits based on income
Why Use Our Calculator?
- ✅ Tax-Free Projection: See tax-free retirement savings
- ✅ Growth Analysis: See how Roth IRA grows over time
- ✅ Contribution Planning: Plan your Roth IRA contributions
- ✅ Retirement Strategy: Plan your retirement savings strategy
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is a Roth IRA?
A Roth IRA is an individual retirement account where you contribute after-tax dollars, and withdrawals in retirement are completely tax-free. Unlike Traditional IRAs, Roth IRAs don't provide a tax deduction when you contribute, but all withdrawals (contributions and earnings) are tax-free in retirement if you meet certain requirements. Roth IRAs also have no required minimum distributions (RMDs).
Who can contribute to a Roth IRA?
You can contribute to a Roth IRA if you have earned income and your income is below certain limits. For 2024, contribution limits phase out at: $146,000-$161,000 (single) and $230,000-$240,000 (married filing jointly). If your income is too high, you may not be able to contribute directly, but you might be able to do a backdoor Roth IRA conversion.
What's the difference between Roth IRA and Traditional IRA?
Traditional IRA contributions are tax-deductible (reduce taxable income now) and withdrawals are taxed in retirement. Roth IRA contributions are made with after-tax dollars (no tax deduction now) but withdrawals are tax-free in retirement. Choose based on whether you expect to be in a higher or lower tax bracket in retirement. Roth IRAs are often better for younger people or those expecting higher taxes in retirement.
When can I withdraw from a Roth IRA?
You can withdraw Roth IRA contributions at any time, penalty-free and tax-free. However, earnings withdrawals are tax-free and penalty-free only after age 59½ and if the account has been open for at least 5 years. There are exceptions for first-time home purchases (up to $10,000), education expenses, and certain hardships. Consult a tax professional for advice on your specific situation.