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Calculate Roth IRA growth projections, analyze conversion strategies, compare Roth vs Traditional IRA, and optimize your tax-free retirement income with our comprehensive calculator.
This calculator provides estimates for educational purposes only. Actual investment returns vary based on market conditions, asset allocation, and economic factors. Tax laws and contribution limits may change. Consult with qualified financial advisors and tax professionals before making investment decisions. Past performance does not guarantee future results.
A Roth IRA (Individual Retirement Account) is a powerful retirement savings tool. Unlike Traditional IRAs, you contribute after-tax dollars, but your money grows tax-free, and qualified withdrawals in retirement are 100% tax-free. Our calculator helps you project growth, plan conversions, and optimize your retirement strategy with accurate, data-driven projections.
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax Treatment | After-tax contributions, tax-free withdrawals | Pre-tax contributions, taxed withdrawals |
| Income Limits | Yes ($146K-$161K single) | No income limits to contribute |
| RMDs Required | ❌ No RMDs ever | ✅ Yes, starting at 73 |
| Early Withdrawal | Contributions anytime tax-free | 10% penalty + taxes before 59½ |
| Best For | Young professionals, lower current tax bracket | High earners needing immediate deduction |
Our comprehensive Roth IRA calculator provides six powerful analysis tabs:
Enter your current age, retirement age, current balance, and annual contributions. Configure employer match, salary growth, and automatic contribution increases to see how consistent investing builds wealth.
View detailed year-by-year projections with interactive charts showing balance growth, contributions vs earnings breakdown, and inflation-adjusted purchasing power over time.
Plan retirement income with multiple strategies: 4% Rule, Fixed Amount, RMD-Style, or Dynamic withdrawals. Calculate monthly income and balance sustainability throughout retirement.
Analyze Traditional IRA to Roth conversion strategies. Calculate tax impact, plan multi-year conversions, and understand the 5-year rule for optimal conversion timing.
Side-by-side comparison of Roth vs Traditional IRA showing after-tax values, tax savings, and Roth advantage quantification to make informed decisions.
Get personalized recommendations including backdoor Roth strategies, asset allocation tips, early withdrawal guidance, and spousal IRA planning.
If your income exceeds Roth IRA limits, the backdoor Roth strategy allows you to access Roth benefits:
The 5-year rule is crucial for tax-free earnings withdrawals:
Penalty-free early withdrawal exceptions (before 59½):
All investment earnings grow completely tax-free. A $500,000 Roth IRA balance means $500,000 in your pocket - no taxes owed on withdrawals in retirement.
Unlike Traditional IRAs, Roth IRAs have no required minimum distributions. Let your money grow tax-free as long as you want and pass it to heirs tax-free.
Withdraw contributions anytime without taxes or penalties. This makes Roth IRAs excellent emergency funds while building retirement savings.
Beneficiaries inherit Roth IRAs tax-free. Unlike Traditional IRAs where heirs pay income tax, Roth distributions remain tax-free for generations.
A Roth IRA is a retirement account where you contribute after-tax dollars, and your money grows tax-free. Unlike traditional IRAs, you pay taxes upfront but enjoy tax-free withdrawals in retirement (after age 59½ and account open 5+ years). For 2024, contribution limits are $6,500 ($7,500 if 50+). Roth IRAs have no required minimum distributions (RMDs) and offer tax-free inheritance benefits.
For 2024, the Roth IRA contribution limit is $6,500 for individuals under 50, and $7,500 for those 50 and older (includes $1,000 catch-up contribution). Income limits apply: Single filers can contribute fully if MAGI is under $146,000 (phase-out $146,000-$161,000). Married filing jointly can contribute fully if MAGI is under $230,000 (phase-out $230,000-$240,000). High earners can use backdoor Roth strategy.
Choose Roth IRA if you expect higher taxes in retirement, are young with decades of tax-free growth ahead, or want no RMDs and tax-free inheritance. Choose Traditional IRA if you need immediate tax deduction, are in high tax bracket now expecting lower bracket in retirement, or exceed Roth income limits. Many use both for tax diversification. Roth is ideal for young professionals; Traditional for high earners near retirement.
A backdoor Roth IRA is a strategy for high-income earners who exceed Roth income limits. You contribute to a non-deductible Traditional IRA (no income limits), then immediately convert it to a Roth IRA. You pay taxes only on earnings during the brief holding period. This legal strategy allows anyone to access Roth benefits regardless of income. Beware of pro-rata rule if you have existing pre-tax IRA balances.
You can withdraw Roth IRA contributions anytime tax and penalty-free since you already paid taxes. For earnings withdrawals to be tax and penalty-free, you must be 59½+ AND account must be open 5+ years (5-year rule). Exceptions allowing penalty-free early withdrawals: first home purchase ($10,000 lifetime), qualified education expenses, disability, or death. Conversions have separate 5-year rules per conversion.
Growth depends on contributions and returns. Example: Contributing $6,500 annually with 8% average return could grow to approximately $745,000 in 30 years (tax-free). Starting with $10,000 and same parameters could yield $820,000. At 10% return, it could reach $1.1 million. Actual results vary based on market performance, contribution consistency, and time horizon. Starting earlier significantly increases potential growth due to compound interest.
The 5-year rule requires your Roth IRA be open for 5 tax years before earnings withdrawals are tax-free (even if you're 59½+). Clock starts January 1 of the year you make your first contribution. Each Roth conversion has its own 5-year clock for penalty-free withdrawals. Example: Open Roth in December 2024, 5 years complete January 1, 2029. Contributions can always be withdrawn tax and penalty-free.
Yes! You can contribute to both 401(k) and Roth IRA simultaneously. They have separate contribution limits: $23,000 for 401(k) + $6,500 for Roth IRA in 2024 (plus catch-up contributions if 50+). This provides tax diversification - pre-tax 401(k) and tax-free Roth. Prioritize: 1) 401(k) to employer match, 2) Max Roth IRA, 3) Additional 401(k) contributions. Income limits apply only to Roth IRA, not 401(k).
Converting Traditional IRA to Roth IRA creates taxable income equal to the converted amount. If you convert $50,000 in 22% tax bracket, you owe $11,000 in taxes (plus state taxes). Strategic approach: Convert during low-income years, spread conversions over multiple years to avoid bracket creep, or convert up to top of current bracket. Pay conversion taxes from non-retirement funds to maximize Roth growth. Consider tax implications carefully.
Roth IRA advantages: 1) Tax-free withdrawals in retirement, 2) No required minimum distributions (RMDs) ever, 3) Tax-free inheritance for beneficiaries, 4) Withdraw contributions anytime penalty-free, 5) Tax-free growth for decades, 6) Hedge against future tax increases, 7) More flexible estate planning, 8) Can contribute at any age with earned income. Ideal for young professionals expecting higher future taxes and long-term growth.
Yes, having a 401(k) doesn't prevent Roth IRA contributions. However, income limits still apply: Single filers under $146,000 MAGI, married filing jointly under $230,000 MAGI (2024 limits). If you exceed these limits, consider backdoor Roth strategy. You can contribute to both accounts simultaneously with separate limits: $23,000 for 401(k) and $6,500 for Roth IRA. This strategy provides excellent tax diversification.
Roth IRAs pass to beneficiaries tax-free, making them excellent estate planning tools. Spouse beneficiaries can treat it as their own Roth IRA with no RMDs. Non-spouse beneficiaries must withdraw within 10 years (SECURE Act 2.0) but withdrawals remain tax-free. Unlike Traditional IRAs, beneficiaries don't pay income tax on distributions. This creates a powerful tax-free legacy. Consider naming contingent beneficiaries and keeping beneficiary designations updated.
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🚀 Comprehensive Roth IRA planning tool with advanced features - completely free
Disclaimer: This Roth IRA calculator provides estimates for educational and planning purposes only. Results are based on assumptions about future returns, tax rates, and contribution patterns. Actual investment returns will vary and are not guaranteed. This tool does not constitute financial, tax, or legal advice. Consult with qualified financial advisors, tax professionals, and legal counsel before making retirement planning decisions. Past performance does not guarantee future results. IRS rules and contribution limits are subject to change.