Roth IRA Calculator
Project tax-free growth in a Roth IRA and see how contributions compound over decades.
2024 limit: $7,000 (<50) / $8,000 (50+)
Projected Balance at Retirement
$792,815
All tax-free withdrawals in retirement
Total Contributions
$220,000
Tax-Free Growth
$572,815
Year-by-Year Growth
| Year | Balance | Contributions | Growth |
|---|---|---|---|
| 1 | $17,952 | $17,000 | $952 |
| 5 | $55,939 | $45,000 | $10,939 |
| 10 | $121,063 | $80,000 | $41,063 |
| 15 | $213,384 | $115,000 | $98,384 |
| 20 | $344,261 | $150,000 | $194,261 |
| 25 | $529,796 | $185,000 | $344,796 |
| 30 | $792,815 | $220,000 | $572,815 |
How This Is Calculated
This calculator projects the future value of a Roth IRA using the compound interest formula with annual contributions. All growth and qualified withdrawals are completely tax-free.
Contribution limits (2024): $7,000 per year if under age 50, $8,000 per year if 50 or older (includes $1,000 catch-up). Contributions are limited to your earned income for the year.
Income limits: Roth IRA contributions phase out at higher incomes. For 2024, the phase-out begins at $146,000 MAGI for single filers and $230,000 for married filing jointly. Above these limits, you may use a "backdoor Roth" strategy.
Growth formula: The calculator uses A = P(1+r)^t + PMT × [((1+r)^t - 1) / r], where P is current balance, r is the annual return, t is years until retirement, and PMT is the annual contribution. The key advantage is that all earnings grow and are withdrawn tax-free.
Contribution limits: $7,000 (under 50) / $8,000 (50+) for 2024. Income phase-out: $146K-$161K (single), $230K-$240K (MFJ). Assumes tax-free growth and qualified withdrawals.
Frequently Asked Questions
Roth IRA vs Traditional IRA — which is better?
A Roth IRA uses after-tax contributions but offers tax-free growth and withdrawals in retirement. A Traditional IRA uses pre-tax contributions (tax-deductible now) but withdrawals are taxed as income. Roth is generally better if you expect to be in a higher tax bracket in retirement.
When can I withdraw from a Roth IRA?
You can withdraw your contributions (not earnings) at any time, tax-free and penalty-free. To withdraw earnings tax-free, you must be 59½ or older AND have had the account for at least 5 years (the 5-year rule).
What are the Roth IRA contribution limits for 2024?
For 2024, the contribution limit is $7,000 if you are under age 50, and $8,000 if you are 50 or older (includes $1,000 catch-up contribution). Contributions are phased out at higher incomes.
Can I contribute to both a 401(k) and a Roth IRA?
Yes, you can contribute to both a 401(k) and a Roth IRA in the same year. The 401(k) limit ($23,000 in 2024) is separate from the IRA limit ($7,000 or $8,000 if 50+). Having both provides tax diversification.
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⚠️ Estimates only. Actual returns vary. Contribution limits and income thresholds may change. Consult a financial advisor or tax professional.