Roth IRA Calculator
Calculate your tax-free retirement savings
Last updated: January 2025
Roth IRA Details
2026 Contribution Limit
$7,000
For comparison with Traditional IRA
Roth IRA vs Traditional IRA Comparison
Tax-Free Growth Projection
Retirement Summary
Roth IRA Benefits
Tax-Free Growth: All qualified withdrawals are 100% tax-free in retirement. No RMDs: Unlike Traditional IRAs, Roth IRAs have no required minimum distributions. Early Access: You can withdraw contributions (not earnings) anytime penalty-free. Best for those who expect higher taxes in retirement.
2026 Limits: $7,000 ($8,000 if 50+). Income limits apply.
Understanding Roth IRAs
Tax-Free Growth
A Roth IRA is one of the most powerful retirement savings vehicles available because all qualified withdrawals are completely tax-free. You contribute after-tax dollars today, but your investments grow tax-free and you pay zero taxes when you withdraw in retirement. This makes a Roth IRA especially valuable if you expect to be in a higher tax bracket in retirement or if tax rates rise in the future.
2026 Contribution and Income Limits
For 2026, you can contribute up to $7,000 to a Roth IRA, or $8,000 if you are age 50 or older (the extra $1,000 is a catch-up contribution). However, your ability to contribute depends on your income. Single filers with a modified AGI below $150,000 can contribute the full amount, with a phase-out up to $165,000. For married filing jointly, the phase-out range is $236,000 to $246,000. If your income exceeds these limits, consider a backdoor Roth IRA strategy.
Roth vs Traditional IRA
The key difference is when you pay taxes. With a Roth IRA, you pay taxes on contributions now and withdraw tax-free later. With a Traditional IRA, you may deduct contributions now but pay taxes on withdrawals in retirement. Roth IRAs also have no Required Minimum Distributions (RMDs), giving you more flexibility in retirement. A Traditional IRA may be better if you need the tax deduction now and expect a lower tax rate in retirement.
Withdrawal Rules and the 5-Year Rule
You can withdraw your Roth IRA contributions at any time, tax-free and penalty-free, since you already paid taxes on that money. However, to withdraw earnings tax-free, you must be at least 59 and a half years old and the account must have been open for at least 5 years (the 5-year rule). Early withdrawals of earnings may be subject to a 10% penalty and income taxes, though exceptions exist for first-time home purchases (up to $10,000), disability, and certain other circumstances.
Frequently Asked Questions
What is the difference between a Roth IRA and Traditional IRA?
Roth IRA contributions are made with after-tax dollars, so qualified withdrawals in retirement are completely tax-free. Traditional IRA contributions may be tax-deductible now, but withdrawals are taxed as income. Roth IRAs also have no Required Minimum Distributions (RMDs).
What is the Roth IRA income limit for 2026?
For 2026, single filers can contribute the full amount if their modified AGI is below $150,000, with a phase-out up to $165,000. Married filing jointly, the phase-out range is $236,000 to $246,000. Above these limits, you cannot contribute directly to a Roth IRA.
Can I withdraw Roth IRA contributions early without penalty?
Yes, you can withdraw your Roth IRA contributions (not earnings) at any time, tax-free and penalty-free. Earnings can be withdrawn tax-free after age 59.5 if the account has been open for at least 5 years.
Can I contribute to both a Roth IRA and a 401(k)?
Yes. Roth IRA and 401(k) have separate contribution limits. You can max out your 401(k) at $23,500 and contribute up to $7,000 to a Roth IRA ($8,000 if 50+) in the same year, as long as your income is below the Roth IRA eligibility threshold.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a strategy for high earners who exceed the income limits for direct Roth contributions. You contribute to a Traditional IRA (non-deductible) and then convert it to a Roth IRA. There is no income limit on conversions. Be aware of the pro-rata rule if you have other pre-tax IRA balances.