What’s the Roth IRA contribution limit?

The IRS adjusts the limit annually. For current year limits and income phase-outs, check IRS Publication 590-A before contributing.

Can I withdraw Roth IRA contributions before retirement?

Contributions (not growth) can be withdrawn tax- and penalty-free at any time. Growth withdrawn before age 59½ and 5 years from first contribution is usually taxable and may owe a 10% penalty.

What's the 2026 Roth IRA contribution limit and income phase-out?

2024 limits (which apply for 2025 contributions made by April 15, 2025): $7,000/year for under 50, $8,000 with $1,000 catch-up for age 50+. 2025 limits (made by April 15, 2026): $7,000/$8,000 (no change). Income phase-outs (single filer): $146,000-$161,000 in 2024, $150,000-$165,000 in 2025. Married filing jointly: $230,000-$240,000 in 2024, $236,000-$246,000 in 2025. Above the phase-out, you can't contribute directly; consider the backdoor Roth strategy. IRS adjusts limits annually for inflation.

What is a backdoor Roth IRA?

A workaround for high earners above the Roth IRA income limits. Contribute to a traditional IRA (no income limit on contributions, but no tax deduction if you have a workplace retirement plan and earn above ~$83K single / $137K joint in 2024), then immediately convert to Roth IRA. Conversion is taxable on any pre-tax money but not on after-tax contributions. Requires no traditional IRA balance to avoid pro-rata rule complications. Common strategy for $200K+ earners. The 'mega backdoor Roth' is a related strategy for those with workplace plans allowing after-tax contributions and in-plan Roth conversions.

Should I prioritize Roth IRA over 401(k)?

Standard hierarchy: (1) 401(k) up to employer match (free money), (2) Max Roth IRA ($7K/year), (3) Max remaining 401(k) ($23.5K total in 2026), (4) Health Savings Account if eligible ($4,300 single / $8,550 family 2025), (5) Taxable brokerage. Reasoning: capture match first, then Roth IRA's tax-free growth and flexibility, then top off 401(k) for higher contribution ceiling. HSAs offer triple tax benefits if you can pay medical expenses out of pocket and let HSA grow.

What investments should I hold in my Roth IRA?

Tax-favored placements: high-growth stocks (since growth is tax-free), small-cap and emerging markets (high expected return + tax-free growth), REITs (REITs are tax-inefficient in taxable accounts due to ordinary-income dividends; perfect for Roth). Less-favored placements: low-growth bonds (waste tax-free space), short-term trading (gains aren't taxed elsewhere if held long-term, so Roth's advantage is smaller). Most retail investors use target-date funds (e.g., Vanguard 2055) or 3-fund portfolios (US stocks 60%, international stocks 30%, bonds 10%). Simplicity beats complexity for most.

Is this Roth IRA calculator accurate for tax projections?

The compound-growth math is exact. The 'tax-free in retirement' framing assumes you follow Roth qualification rules (age 59.5 + 5 years from first contribution for earnings; contributions are always withdrawable tax-free). The calculator does NOT model: state-tax differences (Roth contributions are after-tax federal, but several states tax differently — Pennsylvania, for example, taxes traditional 401(k) contributions, making Roth less tax-arbitraged there); estate-tax implications (Roth IRAs pass tax-free to heirs but stretch-IRA rules changed under SECURE Act); RMD calculations on inherited Roth (10-year rule). For most workers projecting 20-30 years of accumulation, the projected balance is accurate within 1-2%; tax-saved is accurate to the extent your retirement bracket assumption holds.

How do I calculate Roth IRA growth manually?

Use the future-value formula for a series: FV = P(1+r)^n + PMT × [((1+r)^n - 1) / r] where P is starting balance, PMT is periodic contribution, r is the periodic rate, and n is the number of periods. Example: $5K starting, $583/month ($7K/year ÷ 12), 7% annual (0.583%/month), 30 years (360 months). FV = 5000 × (1.00583)^360 + 583 × [((1.00583)^360 - 1) / 0.00583] ≈ $40K + $710K = $750K. Excel: =FV(0.07/12, 30*12, -583, -5000). All Roth means: that $750K is yours, tax-free, in retirement (assuming qualification). Compare to a traditional IRA paying 24% in retirement: $750K × 0.76 = $570K after-tax — Roth saves $180K on that scenario.

What's the best brokerage for a Roth IRA?

Top tier (zero fees, broad fund selection): Fidelity, Schwab, Vanguard. Each offers $0 trading commissions, no account fees, and access to their proprietary index funds with rock-bottom expense ratios (Fidelity ZERO funds: 0.00% expense; Schwab S&P 500 fund SWPPX: 0.02%; Vanguard VTSAX: 0.04%). Robo-advisors (good for hands-off): Betterment, Wealthfront — manage for ~0.25% fee. App-first brokerages (good UX, watch for fees): Robinhood (free but limited tools), M1 Finance (free, automated allocations). Pick based on whether you want to pick funds (Fidelity/Schwab/Vanguard) or have a robot manage it (Betterment/Wealthfront). Don't open at a high-fee broker (Edward Jones, Merrill Lynch full-service); 1% AUM eats 25% of your 30-year return.

Money & Finance · Free tool

Roth IRA Calculator

Estimate your Roth IRA balance at retirement assuming post-tax contributions and tax-free withdrawals. Free, instant online tool with no registration needed.

Updated June 2026

Starting balance ($)Monthly deposit ($)Annual return (%)Years

Final balance

$650,568

You contributed

$185,000

Interest earned

$465,568

Year-by-year growthContributionsInterest

31 rows — one per year plus the starting balance

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What it does

A Roth IRA calculator. Roth IRA contributions are made with after-tax money, meaning qualified withdrawals in retirement are tax-free — including all the growth. For many people, especially those with decades until retirement, this is the single best retirement account available.

At $500/month (well under the 2026 contribution limit) with 30 years of 7% returns, the balance reaches about $620,000. Every dollar of that is withdrawable tax-free in retirement — no RMDs, no surprise tax bills. Pair with a 401(k) if your employer offers a match.

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Example input & output

Input

Current balance: $5,000
Monthly contribution: $500
Annual return: 7%
Years: 30

Output

Projected balance: $620,000
Total contributed: $185,000
Growth: $435,000
All withdrawable tax-free in retirement

Same contributions in a taxable brokerage would owe capital gains and dividend tax annually and at withdrawal.

How to use it

Enter your current Roth balance.
Enter your monthly contribution (up to the annual limit / 12).
Use 7% as a reasonable long-term return assumption.
Set years until retirement.
Read the projected tax-free balance.

How it works

Key takeaways

Roth contributions are after-tax, but ALL future growth and qualified withdrawals are 100% tax-free — the most powerful retirement vehicle for most workers under 40.
The 22-24% federal bracket is the rough Roth-vs-traditional break-even. Below it, Roth usually wins; above it, traditional often wins.
Unlike traditional IRAs, Roth has NO Required Minimum Distributions — you can let it grow tax-free for your whole life and pass it to heirs.
Above the income phase-out ($161K single / $240K married in 2024), the backdoor Roth (traditional IRA → immediate conversion) still works.

Roth IRA growth uses standard compound interest: FV = P(1+r)^n + PMT × [((1+r)^n - 1) / r]. The crucial difference from a traditional IRA: contributions are after-tax, but ALL future growth and withdrawals are tax-free (after age 59½ with 5+ years since first contribution).

Advanced: when Roth beats traditional, and when it doesn’t

The Roth-vs-traditional choice is fundamentally a bet on future tax brackets. Roth wins if: you expect to be in a higher tax bracket in retirement than now (most early-career workers); you want estate-planning flexibility (Roth has no required minimum distributions, unlike traditional); you want a no-tax-impact emergency fall-back (you can always withdraw contributions tax-free). Traditional wins if: you’re in a high bracket now (32%+) and expect to be lower in retirement; you need the current-year deduction; you live in a high-tax state now and plan to retire in a no-state-tax state. The break-even is around the 22-24% federal bracket. See the Roth vs traditional break-even calculator for personalized math.

How this compares to alternatives

vs Vanguard / Fidelity Roth IRA calculator: those typically default to their own fund mix and assumed returns; ours forces you to specify the rate. vs 401k calculator: 401k has 3.3x higher contribution ceiling ($23K vs $7K) but is taxed as ordinary income on withdrawal. Most CFP-recommended order: 401k up to match → Roth IRA full → 401k remaining ceiling → HSA → taxable. See the 401k calculator. vs taxable brokerage: taxable owes capital-gains tax on sale + dividend tax annually; Roth is purely tax-free. Over 30 years, Roth typically beats taxable by 10-25% in net wealth at equivalent contribution.

Common mistakes when using this tool

Ignoring income phase-outs. Roth IRA contributions phase out at $146-161K single / $230-240K married (2024 numbers). High earners need backdoor Roth strategy or megabackdoor Roth via 401k.
Skipping employer 401k match. Free money beats Roth in priority order. Always max the employer match before maxing Roth IRA.
Putting bonds in Roth. Roth’s magic is tax-free growth; bonds grow slowly. Hold bonds in tax-deferred (traditional 401k); hold high-growth stocks in Roth.
Missing the 5-year rule. Earnings withdrawals require BOTH age 59½ AND 5 years since first contribution. Late starters may have penalties on growth withdrawals even after 60.
Not using the “backdoor” if eligible. Above income phase-out, you can still contribute via traditional IRA → immediate Roth conversion. Trips up: pro-rata rule on existing pre-tax IRA balances.

Learn more about Roth IRAs

Roth vs Traditional IRA — the bracket-arbitrage decision, when each wins, and break-even math.
Backdoor Roth IRA — the high-income workaround, the pro-rata rule trap, and the mega-backdoor variant.
The Roth 5-year rule — both rules (one for contributions, one for conversions), and why late starters can hit penalties.
Compound interest glossary — the math that makes 30-year tax-free growth so powerful.

When to use this tool

Annual retirement planning.
Income below the Roth IRA contribution limit.
Expecting to be in the same or higher tax bracket in retirement.

When not to use it

If your income exceeds direct Roth limits — consider a backdoor Roth (different mechanics).
Traditional IRA or 401(k) analysis (those involve tax deductions now, taxable withdrawals later).

Common use cases

Planning tax-free retirement income.
Modeling the value of maxing out Roth contributions each year.
Comparing Roth IRA vs 401(k) prioritization.

Frequently asked questions

What’s the Roth IRA contribution limit?: The IRS adjusts the limit annually. For current year limits and income phase-outs, check IRS Publication 590-A before contributing.
Can I withdraw Roth IRA contributions before retirement?: Contributions (not growth) can be withdrawn tax- and penalty-free at any time. Growth withdrawn before age 59½ and 5 years from first contribution is usually taxable and may owe a 10% penalty.
What's the 2026 Roth IRA contribution limit and income phase-out?: 2024 limits (which apply for 2025 contributions made by April 15, 2025): $7,000/year for under 50, $8,000 with $1,000 catch-up for age 50+. 2025 limits (made by April 15, 2026): $7,000/$8,000 (no change). Income phase-outs (single filer): $146,000-$161,000 in 2024, $150,000-$165,000 in 2025. Married filing jointly: $230,000-$240,000 in 2024, $236,000-$246,000 in 2025. Above the phase-out, you can't contribute directly; consider the backdoor Roth strategy. IRS adjusts limits annually for inflation.
What is a backdoor Roth IRA?: A workaround for high earners above the Roth IRA income limits. Contribute to a traditional IRA (no income limit on contributions, but no tax deduction if you have a workplace retirement plan and earn above ~$83K single / $137K joint in 2024), then immediately convert to Roth IRA. Conversion is taxable on any pre-tax money but not on after-tax contributions. Requires no traditional IRA balance to avoid pro-rata rule complications. Common strategy for $200K+ earners. The 'mega backdoor Roth' is a related strategy for those with workplace plans allowing after-tax contributions and in-plan Roth conversions.
Should I prioritize Roth IRA over 401(k)?: Standard hierarchy: (1) 401(k) up to employer match (free money), (2) Max Roth IRA ($7K/year), (3) Max remaining 401(k) ($23.5K total in 2026), (4) Health Savings Account if eligible ($4,300 single / $8,550 family 2025), (5) Taxable brokerage. Reasoning: capture match first, then Roth IRA's tax-free growth and flexibility, then top off 401(k) for higher contribution ceiling. HSAs offer triple tax benefits if you can pay medical expenses out of pocket and let HSA grow.
What investments should I hold in my Roth IRA?: Tax-favored placements: high-growth stocks (since growth is tax-free), small-cap and emerging markets (high expected return + tax-free growth), REITs (REITs are tax-inefficient in taxable accounts due to ordinary-income dividends; perfect for Roth). Less-favored placements: low-growth bonds (waste tax-free space), short-term trading (gains aren't taxed elsewhere if held long-term, so Roth's advantage is smaller). Most retail investors use target-date funds (e.g., Vanguard 2055) or 3-fund portfolios (US stocks 60%, international stocks 30%, bonds 10%). Simplicity beats complexity for most.
Is this Roth IRA calculator accurate for tax projections?: The compound-growth math is exact. The 'tax-free in retirement' framing assumes you follow Roth qualification rules (age 59.5 + 5 years from first contribution for earnings; contributions are always withdrawable tax-free). The calculator does NOT model: state-tax differences (Roth contributions are after-tax federal, but several states tax differently — Pennsylvania, for example, taxes traditional 401(k) contributions, making Roth less tax-arbitraged there); estate-tax implications (Roth IRAs pass tax-free to heirs but stretch-IRA rules changed under SECURE Act); RMD calculations on inherited Roth (10-year rule). For most workers projecting 20-30 years of accumulation, the projected balance is accurate within 1-2%; tax-saved is accurate to the extent your retirement bracket assumption holds.
How do I calculate Roth IRA growth manually?: Use the future-value formula for a series: FV = P(1+r)^n + PMT × [((1+r)^n - 1) / r] where P is starting balance, PMT is periodic contribution, r is the periodic rate, and n is the number of periods. Example: $5K starting, $583/month ($7K/year ÷ 12), 7% annual (0.583%/month), 30 years (360 months). FV = 5000 × (1.00583)^360 + 583 × [((1.00583)^360 - 1) / 0.00583] ≈ $40K + $710K = $750K. Excel: =FV(0.07/12, 30*12, -583, -5000). All Roth means: that $750K is yours, tax-free, in retirement (assuming qualification). Compare to a traditional IRA paying 24% in retirement: $750K × 0.76 = $570K after-tax — Roth saves $180K on that scenario.
What's the best brokerage for a Roth IRA?: Top tier (zero fees, broad fund selection): Fidelity, Schwab, Vanguard. Each offers $0 trading commissions, no account fees, and access to their proprietary index funds with rock-bottom expense ratios (Fidelity ZERO funds: 0.00% expense; Schwab S&P 500 fund SWPPX: 0.02%; Vanguard VTSAX: 0.04%). Robo-advisors (good for hands-off): Betterment, Wealthfront — manage for ~0.25% fee. App-first brokerages (good UX, watch for fees): Robinhood (free but limited tools), M1 Finance (free, automated allocations). Pick based on whether you want to pick funds (Fidelity/Schwab/Vanguard) or have a robot manage it (Betterment/Wealthfront). Don't open at a high-fee broker (Edward Jones, Merrill Lynch full-service); 1% AUM eats 25% of your 30-year return.

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