Free Roth IRA calculator to project tax-free retirement growth. Estimate contribution limits, future balance, and monthly retirement income.
IRS Contribution Limits
Under 50: $7,000/year
50 and Over: $8,000/year
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A Roth IRA grows tax-free and qualified withdrawals in retirement are completely tax-free. Our calculator projects your balance at retirement, factors in contribution limits, and estimates your tax-free monthly income.
Unlike traditional IRAs, Roth contributions are made with after-tax dollars, but all growth and withdrawals are tax-free in retirement. For someone in a higher tax bracket in retirement, or expecting tax rates to rise, Roth can save significant money.
Future Value Formula
Project your tax-free retirement income needs.
Maximize contributions within IRS limits.
Compare Roth vs Traditional tax implications.
For 2024: $7,000 for those under 50, $8,000 for 50+ (includes $1,000 catch-up). Income limits apply: phaseout starts at $146,000 (single) or $230,000 (married filing jointly).
Contributions can be withdrawn anytime tax and penalty-free. Earnings can be withdrawn tax-free after age 59½ AND the account has been open 5+ years. Early withdrawal of earnings may incur 10% penalty.
Roth is generally better if you expect higher taxes in retirement or want tax-free withdrawals. Traditional is better if you need the tax deduction now and expect lower taxes in retirement.
The 4% rule suggests withdrawing 4% of your portfolio in year one of retirement, then adjusting for inflation. A $500,000 Roth would provide about $20,000/year, all tax-free.