Roth IRA Calculator
Project your Roth IRA balance at retirement with tax-free growth. See total contributions, tax-free earnings, estimated monthly retirement income, and how the tax-free advantage compares to a taxable account.
Roth IRA Projection
Why Roth IRA Growth Is Powerful
Unlike traditional retirement accounts, Roth IRA growth is never taxed. Every dollar of investment return stays entirely yours in retirement. At a 22% tax rate, a $1,000,000 Roth balance is worth $1,000,000 — the equivalent traditional account balance is worth only $780,000 after taxes.
2025 Contribution Limits
- Under age 50: $7,000/year maximum
- Age 50 or older: $8,000/year (catch-up contribution)
- Income phase-out (single): $150,000–$165,000 MAGI
- Income phase-out (married filing jointly): $236,000–$246,000 MAGI
Roth IRA Advantages
- Tax-free growth and qualified withdrawals
- No required minimum distributions (RMDs)
- Contributions can be withdrawn any time, penalty-free
- Can contribute at any age (no maximum age limit)
- Excellent estate planning tool — pass tax-free to heirs
Roth IRA vs. Traditional IRA: Which Is Better for You?
The choice depends primarily on your expected tax rate now vs. in retirement. Roth wins when your current rate is equal to or lower than your future rate. Traditional IRA wins when your current marginal rate is significantly higher than expected retirement income. Here's a direct comparison:
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax treatment | After-tax contributions; tax-free growth | Pre-tax contributions; taxable withdrawals |
| 2025 contribution limit | $7,000 ($8,000 age 50+) | $7,000 ($8,000 age 50+) |
| Income limit | Phase-out: $150K–$165K (single); $236K–$246K (MFJ) | No income limit for contributions; deductibility phases out |
| Required minimum distributions | None during owner's lifetime | Start at age 73 |
| Early withdrawal (contributions) | Any time, penalty-free | 10% penalty before 59½ |
| Best for | Early career, lower income now, expecting higher taxes later | Peak earners expecting lower retirement income |
The Compounding Math: Starting at 25 vs. 35 vs. 45
Contributing $6,000/year to a Roth IRA ($500/month) at a 7% average annual return produces dramatically different outcomes based on starting age:
- Start at 25: $6,000/year for 40 years → $1,197,000 tax-free at 65 (total invested: $240,000)
- Start at 35: $6,000/year for 30 years → $567,000 tax-free at 65 (total invested: $180,000)
- Start at 45: $6,000/year for 20 years → $245,000 tax-free at 65 (total invested: $120,000)
Starting at 25 vs. 35 produces more than double the balance while investing only $60,000 more. The extra decade of compounding — not the extra contributions — drives most of the difference.
The Backdoor Roth Strategy for High Earners
If your income exceeds the Roth IRA phase-out limits, the backdoor Roth is a legal workaround: make a non-deductible Traditional IRA contribution, then immediately convert it to a Roth IRA. The conversion triggers no tax if you have no existing pre-tax IRA balances. If you do have pre-tax IRA funds, the pro-rata rule applies and part of the conversion becomes taxable — consult a tax advisor before proceeding. Mega backdoor Roth (through after-tax 401k contributions) allows contributions up to $46,500/year beyond standard limits for those whose plan allows it.
See how a Roth IRA fits into your complete retirement picture: How Much Do You Need to Retire?
Frequently Asked Questions
What is the deadline to contribute to a Roth IRA?
You can contribute to a Roth IRA for a given tax year up until the tax filing deadline — typically April 15 of the following year. This means you can make 2025 Roth IRA contributions as late as April 15, 2026. Extensions for filing don't extend the contribution deadline.
Can I contribute to both a 401(k) and a Roth IRA?
Yes — these are separate contribution limits. In 2025, you can contribute up to $23,500 to a 401(k) and up to $7,000 to a Roth IRA (if your income qualifies), for a combined $30,500 in tax-advantaged retirement savings. Maxing both is one of the most powerful wealth-building strategies available.
What if my income is too high for a Roth IRA?
If your MAGI exceeds the phase-out range, you can use the "backdoor Roth IRA" strategy: contribute to a Traditional IRA (non-deductible) then immediately convert it to a Roth. This is legal and commonly used by high-income earners. Consult a tax advisor to ensure you handle the pro-rata rule correctly if you have existing pre-tax IRA balances.
When can I withdraw Roth IRA earnings tax-free?
Roth IRA earnings can be withdrawn tax-free and penalty-free after age 59½, provided the account has been open for at least 5 years. Withdrawing earnings before meeting both conditions may trigger income tax and a 10% early withdrawal penalty. Contributions (not earnings) can be withdrawn at any time with no tax or penalty.