Roth IRA Calculator
Project your Roth IRA's tax-free growth and see how much you'll have in retirement — completely tax-free.
Income Eligibility Check
Tax-Free Roth IRA Balance
At age 65 (35 years)
$1,165,677
~$3,886/mo tax-free at 4% withdrawal rate
Total Contributed
$255,000
Tax-Free Growth
$910,677
Annual Contribution
$7,000
Years of Growth
35 yrs
100% tax-free in retirement
All withdrawals after age 59½ (with 5-year rule met) are completely tax-free, including $910,677 in earnings.
Assumes consistent contributions and returns. Income limits based on MAGI. Consult a tax advisor.
What Is a Roth IRA and Why Is It So Powerful?
A Roth IRA (Individual Retirement Account) is a tax-advantaged retirement account where you contribute after-tax dollars and your money grows completely tax-free. Unlike a Traditional IRA or 401(k), you pay no income tax on withdrawals in retirement — not on contributions, not on decades of investment gains. For someone who maxes out a Roth IRA for 35 years, the tax-free compounding can mean hundreds of thousands of dollars in savings compared to a taxable brokerage account.
For 2026, the IRS allows contributions of up to $7,000 per year($8,000 if you're 50 or older, thanks to catch-up contributions). These limits apply per person, so a married couple can contribute $14,000 combined ($16,000 with catch-up). Contributions must come from earned income — wages, self-employment, or alimony — but you don't have to contribute to your own Roth. A non-working spouse can contribute using the working spouse's income (a "spousal IRA").
Unlike a 401(k), the Roth IRA has no Required Minimum Distributions (RMDs). You can leave the money invested for as long as you live, making it an exceptional wealth-transfer tool. Your Roth IRA contributions (not earnings) can also be withdrawn at any time, tax and penalty free — making it a flexible emergency backstop, though ideally one you never need to tap.
The 5-year rule requires that your Roth IRA be open for at least 5 years before tax-free withdrawals of earnings can begin. The clock starts January 1 of the year you make your first contribution. This is one more reason to open a Roth IRA as early as possible, even if you can only contribute a small amount initially.
Roth IRA Income Limits for 2026
Your eligibility to contribute to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI). For 2026, the phase-out ranges are:
| Filing Status | Phase-Out Begins | Phase-Out Ends |
|---|---|---|
| Single / Head of Household | $150,000 | $165,000 |
| Married Filing Jointly | $236,000 | $246,000 |
| Married Filing Separately | $0 | $10,000 |
If your income exceeds the upper limit, you cannot contribute directly. However, you can use the Backdoor Roth IRA strategy: contribute to a non-deductible Traditional IRA (no income limit) and then convert it to a Roth IRA. This is a legal, widely-used strategy for high earners.
Frequently Asked Questions
Roth IRA vs. Traditional IRA: which is better?
The Roth wins if you expect to be in a higher tax bracket in retirement than you are now — common for younger workers early in their careers. The Traditional IRA wins if you expect a lower tax rate in retirement. When uncertain, the Roth's tax-free growth and no RMDs are often worth prioritizing. Many advisors recommend maxing a Roth IRA when you're young, before income rises above the phase-out threshold.
Roth IRA vs. Roth 401(k): what's the difference?
A Roth 401(k) is employer-sponsored with a 2026 limit of $23,500 ($31,000 with catch-up) — far higher than the Roth IRA's $7,000 limit. Roth 401(k)s have no income limits, so high earners who are phased out of Roth IRAs can still use them. However, Roth IRAs offer more investment flexibility and no RMDs. The ideal strategy: get your employer's full 401(k) match first, then max a Roth IRA, then return to the 401(k).
Can I contribute to a Roth IRA and a 401(k) in the same year?
Yes. These are separate accounts with separate contribution limits. Contributing $7,000 to your Roth IRA does not reduce your 401(k) contribution room. The limits are entirely independent. The only exception: your total Traditional + Roth IRA contributions combined cannot exceed $7,000 ($8,000 with catch-up) in a single year.
What should I invest in inside my Roth IRA?
Since your earnings are never taxed, the Roth IRA is the best place to hold high-growth assets. Most people start with low-cost index funds — a total U.S. stock market fund, an international fund, and a bond fund. A target-date retirement fund (e.g. Vanguard Target Retirement 2055) is a single-fund solution that automatically rebalances as you approach retirement. Minimize expense ratios: even a 0.5% difference compounds dramatically over 30+ years.