Roth IRA Calculator - Plan Your Tax-Free Retirement
Calculate your Roth IRA growth potential and plan your retirement with our comprehensive calculator
Personal Information
Your Roth IRA Projection
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Final Balance
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Total Contributions
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Tax-Free Growth
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Monthly Withdrawal (4% Rule)
Roth IRA Growth Projection Over Time
How to Calculate Your Roth IRA Growth and Contributions
Our Roth IRA calculator uses compound interest formulas to project your retirement savings growth. The calculator considers your current age, retirement timeline, contribution amounts, and expected investment returns to provide accurate projections for your tax-free retirement income.
Understanding Your Roth IRA Projections
The Roth IRA calculator shows several key metrics:
- Final Balance: Your total Roth IRA value at retirement
- Total Contributions: The sum of all contributions you'll make
- Tax-Free Growth: Investment gains that grow tax-free
- Monthly Withdrawal: Sustainable retirement income using the 4% rule
Roth IRA Contribution Limits and Eligibility
| Year | Under 50 | 50 and Over | Income Limit (Single) | Income Limit (Married) |
|---|---|---|---|---|
| 2024 | $7,000 | $8,000 | $138,000 - $153,000 | $218,000 - $228,000 |
Roth IRA vs Traditional IRA Comparison
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax Treatment | After-tax contributions, tax-free withdrawals | Pre-tax contributions, taxed on withdrawal |
| Required Minimum Distributions | None during lifetime | Required at age 73 |
| Early Withdrawal Penalties | Contributions anytime, earnings after 59½ | 10% penalty before 59½ |
| Income Limits | Yes, phase-out ranges apply | Yes, if covered by employer plan |
Frequently Asked Questions About Roth IRA
What is a Roth IRA and how does it work?
A Roth IRA is a retirement account where you contribute after-tax dollars, but your investments grow tax-free and qualified withdrawals in retirement are tax-free. This makes it an excellent tool for tax diversification in retirement.
What are the 2024 Roth IRA contribution limits?
For 2024, you can contribute up to $7,000 to a Roth IRA if you're under 50, or $8,000 if you're 50 or older (includes $1,000 catch-up contribution). These limits are subject to income phase-outs.
What are the income limits for Roth IRA contributions in 2024?
For 2024, the income phase-out ranges are $138,000-$153,000 for single filers and $218,000-$228,000 for married filing jointly. Above these limits, you cannot contribute directly to a Roth IRA.
What is a backdoor Roth IRA conversion?
A backdoor Roth IRA allows high-income earners to contribute to a Roth IRA indirectly by making non-deductible contributions to a traditional IRA and then converting it to a Roth IRA.
When can I withdraw money from my Roth IRA?
You can withdraw your contributions anytime tax and penalty-free. For earnings, you must wait until age 59½ and the account must be at least 5 years old to avoid taxes and penalties.
What is the 5-year rule for Roth IRAs?
The 5-year rule requires that your Roth IRA be open for at least 5 years before you can withdraw earnings tax-free, even if you're over 59½. Each conversion also has its own 5-year clock.
Should I choose a Roth IRA or Traditional IRA?
Choose a Roth IRA if you expect to be in a higher tax bracket in retirement or want tax-free growth. Choose a Traditional IRA if you want immediate tax deductions and expect lower taxes in retirement.
Can I convert my Traditional IRA to a Roth IRA?
Yes, you can convert a Traditional IRA to a Roth IRA at any time. You'll pay taxes on the converted amount in the year of conversion, but future growth will be tax-free.
Are there required minimum distributions for Roth IRAs?
No, Roth IRAs do not have required minimum distributions during the owner's lifetime, making them excellent for estate planning and leaving money to heirs.
What happens to my Roth IRA when I die?
Your Roth IRA can be inherited by your beneficiaries. Spouses can treat it as their own, while non-spouse beneficiaries must generally withdraw the funds within 10 years under current rules.