Project your Roth IRA at retirement, check this year's contribution and income limits, and watch decades of tax-free compounding add up.
This is a simplified projection assuming a constant annual return and steady contributions. Qualified Roth IRA withdrawals are generally tax-free in retirement, but rules and limits apply. Actual returns vary and may be negative. Not financial or tax advice — consult a qualified professional and confirm current limits on irs.gov.
You fund a Roth IRA with money you've already paid taxes on. In return, qualified withdrawals in retirement — including all the investment growth — are generally tax-free. Over several decades, that growth can dwarf your contributions, and with a Roth you keep all of it. This calculator shows how your contributions and tax-free compounding build up by your chosen retirement age.
The IRS caps how much you can contribute to an IRA each year, with an extra catch-up amount once you reach 50. Roth IRAs also have income limits: above certain modified adjusted gross income (MAGI) thresholds, your allowed contribution phases out and eventually disappears. Enter your MAGI above to check where you fall. These figures change periodically, so always confirm the current year's numbers on irs.gov.
A Roth is funded with after-tax money and grows tax-free, with tax-free qualified withdrawals. A traditional IRA may give you a tax deduction now, but withdrawals are taxed in retirement. Roth is often favored by those who expect to be in a similar or higher tax bracket later.
The IRS sets an annual IRA contribution limit, with an additional catch-up amount at age 50+. Confirm the current figure on irs.gov, as it changes periodically.
If your income exceeds the limit, you may still be able to contribute through a "backdoor Roth" strategy, which involves a traditional IRA contribution and conversion. This has tax implications — consult a tax professional before attempting it.
You can generally withdraw your direct Roth contributions (not earnings) at any time without taxes or penalty, because you already paid tax on them. Earnings withdrawn early may face taxes and penalties. Rules apply — verify your situation.