Roth IRA Calculator

Frequently Asked Questions

What are the 2026 Roth IRA income limits?

Single filers can make full contributions below $150,000 MAGI; the ability phases out completely above $165,000. Married filing jointly phases out between $236,000 and $246,000. Above these limits, use the backdoor Roth strategy.

Can I withdraw Roth IRA contributions at any time?

Yes. Your own Roth IRA contributions (not earnings) can be withdrawn at any time, tax-free and penalty-free, regardless of age. This makes the Roth IRA uniquely flexible compared to other retirement accounts.

Does a Roth IRA have RMDs?

No. Roth IRAs do not require minimum distributions during the original owner's lifetime. This allows the account to compound tax-free indefinitely. Inherited Roth IRAs do have distribution requirements under the SECURE Act.

How does the Roth IRA five-year rule work?

Earnings are only tax-free if the Roth has been open for at least 5 years AND you meet a qualifying event (age 59½, death, disability, or first home purchase). The 5-year clock starts January 1 of the tax year you first contributed to any Roth IRA.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

This calculator projects the tax-free growth of your Roth IRA through retirement. You enter annual contributions, current balance, expected return rate, and years until retirement. The future-value formula is: FV = PV × (1 + r)ⁿ + PMT × [((1 + r)ⁿ − 1) ÷ r]. Because Roth distributions in retirement are completely tax-free, the projected balance is also the projected after-tax value - a key advantage over traditional accounts where the displayed balance must be reduced by future taxes.

The comparison section estimates the equivalent traditional IRA balance that would be needed to generate the same after-tax income, given your expected retirement tax rate - illustrating the tax-free advantage of Roth in concrete dollar terms.

Roth IRA Rules and Limits for 2026

Contribution limit: $7,000 (under 50) or $8,000 (50 and older) per year, combined across all IRAs. Unlike traditional IRA contributions, Roth contributions are never deductible - you contribute after-tax dollars. Qualified distributions (account open 5+ years, age 59½+, or other qualifying event) are completely tax-free.

Income phase-out for 2026 (direct Roth IRA contributions):

Single: Phases out between $150,000 and $165,000 MAGI

Married Filing Jointly: Phases out between $236,000 and $246,000 MAGI

Married Filing Separately: Phases out from $0 to $10,000

Above these limits, direct contributions are not allowed. High earners can use the backdoor Roth strategy (non-deductible traditional IRA contribution plus conversion) to get around the income limits.

Key Advantages of the Roth IRA

Tax-free growth and withdrawals: All qualified withdrawals are 100% tax-free, including decades of investment returns. A $100,000 contribution that grows to $500,000 produces $400,000 of untaxed earnings.

No RMDs during the owner's lifetime: Unlike traditional IRAs, Roth IRAs have no required minimum distributions while you are alive. The account can compound untouched indefinitely.

Flexible withdrawal of contributions: You can always withdraw your contributions (not earnings) from a Roth IRA at any time, for any reason, without taxes or penalties. This makes the Roth IRA a secondary emergency fund for many savers.

Estate planning advantages: Heirs who inherit a Roth IRA can take tax-free distributions, making it one of the most valuable assets to pass on.

Roth vs. Traditional: The Decision Framework

The mathematically correct choice depends on your current marginal tax rate versus your expected effective rate in retirement. At the same tax rate, Roth and traditional are equivalent (pay tax now versus pay later - same amount). Roth wins when current rate < future rate; traditional wins when current rate > future rate.

Practical heuristics: Young workers in the 10-12% bracket should almost always choose Roth. Workers in the 22-24% bracket often benefit from both Roth and traditional, splitting contributions to hedge the uncertainty. Workers in the 32%+ bracket usually benefit from the traditional deferral if they expect to be in lower brackets in retirement, especially if their state taxes income at high rates as well.

The Five-Year Rules and Early Withdrawals

Five-year rule for contributions: Earnings inside the Roth must have been in the account for at least 5 years before the account is opened to be withdrawn tax-free. The clock starts January 1 of the tax year for which the first contribution was made.

Five-year rule for conversions: Each Roth conversion has its own 5-year clock. Converted principal can only be withdrawn penalty-free after 5 years (unless you are over 59½).

Ordering rules: Roth withdrawals come out in a specific order: contributions first (always tax- and penalty-free), then conversions (oldest first), then earnings last. This ordering maximizes flexibility for early access.

Tax laws change frequently. Verify current limits at IRS.gov and consult a qualified financial advisor before making retirement decisions.

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