Roth IRA Calculator

Roth IRA Calculator

Project your Roth IRA balance at retirement and see how tax-free growth compares to a taxable account. Enter your current balance, annual contribution, and expected return to get a year-by-year growth schedule, total tax saved, and the full advantage of Roth IRA's tax-free status. The 2026 contribution limit is $7,500 (under 50) or $8,600 (age 50 and above).

Roth IRA Calculator · 2026

Growth projection · Roth vs taxable comparison · tax savings · year-by-year schedule

Your Roth IRA
Annual Contribution
2026 limit: $7,500/year (under 50) · $8,600 at age 50+
Eligibility & Tax Rate

Enter your Roth IRA details to see your tax-free retirement balance and how it compares to a taxable account.

What Is a Roth IRA and How Does It Grow?

A Roth IRA (Individual Retirement Account) lets you contribute after-tax dollars, invest them in stocks, bonds, ETFs, or mutual funds, and withdraw everything tax-free in retirement. There are no taxes on dividends, capital gains, or interest while the money compounds inside the account. At retirement, qualified withdrawals, contributions and all earnings, come out completely free of federal income tax.

The tax-free compounding advantage compounds itself over time. On a $7,500 annual contribution at 7% return over 35 years, a Roth IRA accumulates approximately $1.06 million, all of which you keep. In a taxable account earning the same return, annual taxes on gains steadily erode growth, leaving roughly $751,000 after tax drag, a $315,000 difference generated purely by tax-free compounding.

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The Roth IRA's unique advantages in 2026: No required minimum distributions (RMDs) ever, the only sheltered retirement account with no RMD requirement. Contributions can be withdrawn tax-free and penalty-free at any time (earnings have different rules). No age limit on contributions as long as you have earned income. All future growth is permanently tax-free regardless of how large the account grows.

2026 Roth IRA Contribution Limits and Income Rules

Contribution Limits

The IRS sets annual contribution limits for Roth and traditional IRAs combined. For 2026, the limit increased slightly compared to recent years:

Age Group2026 Roth IRA LimitNote
Under age 50$7,500Combined Roth + traditional IRA limit
Age 50 and over$8,600Includes $1,100 catch-up contribution

* Source: IRS Notice 2025-67. The $7,500/$8,600 limit applies to the combined total across all your IRAs (Roth + traditional). Contributing the maximum to a traditional IRA reduces how much you can put into a Roth IRA.

Income Limits and Phase-Out Range

High earners face contribution restrictions. The Roth IRA income phase-out for 2026:

Filing StatusPhase-Out Begins (AGI)Contribution Eliminated Above
Single / Head of Household$153,000$168,000
Married Filing Jointly$242,000$252,000
Married Filing Separately$0$10,000

* Source: IRS. Phase-out is linear, partial contributions are allowed within the range. MFS filers face the most restrictive phase-out.

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Over the income limit? Use the backdoor Roth IRA. High earners above the phase-out threshold can contribute to a non-deductible traditional IRA and then convert it to a Roth IRA. This "backdoor" strategy is legal and explicitly permitted by the IRS (though the pro-rata rule applies if you have other pre-tax IRA funds). High earners at large employers may also use a "mega backdoor Roth" through after-tax 401(k) contributions with in-plan or in-service conversions, up to $72,000 total in 2026.

How to Use This Roth IRA Growth Calculator

1
Enter your current age and retirement age. The calculator adjusts the 2026 contribution limit automatically: $7,500 for those under 50, or $8,600 once you reach 50.
2
Set your contribution amount. Choose "Yes, max it out" to use the full IRS limit each year, or switch to manual mode to enter a specific annual contribution amount.
3
Enter your income to check eligibility. The calculator flags whether your AGI puts you in the full-contribution zone, the phase-out range, or above the limit where direct contributions are ineligible.
4
Set your marginal tax rate and expected return. The tax rate is used to calculate how much a taxable account loses to annual tax drag, showing the Roth's full advantage. The S&P 500 has historically averaged 9.5% nominal annually; 7% is a common after-inflation projection.
5
Review the comparison. The results show your Roth IRA balance at retirement, the equivalent taxable account balance at the same return, and the dollar advantage of Roth's tax-free growth. The year-by-year table and chart show how the gap widens over time.

Roth IRA vs. Traditional IRA: Key Differences

Roth IRATraditional IRA
ContributionsAfter-tax (no deduction)Pre-tax (may be deductible)
Tax on growthTax-freeTax-deferred
Withdrawals in retirementTax-free (qualified)Taxed as ordinary income
Required Minimum DistributionsNone, everRequired starting at age 73
Income limitsYes ($168K single / $252K MFJ in 2026)No limit on contributions; deductibility phases out
Contribution limit (2026)$7,500 / $8,600 (50+)$7,500 / $8,600 (50+), combined limit
Early withdrawal of contributionsAlways tax-free and penalty-freeSubject to income tax and 10% penalty
5-year ruleEarnings must stay 5+ years for tax-free withdrawalAll withdrawals taxed as income regardless
Best forExpect same or higher tax rate in retirementExpect lower tax rate in retirement; need deduction now

Roth IRA Withdrawal Rules: The 5-Year Rule and Age 59½

Your Contributions: Always Accessible

The amount you contributed (your principal) can be withdrawn at any time, for any reason, without taxes or penalties. This makes the Roth IRA unusually flexible compared to other retirement accounts. If you contributed $50,000 over the years, you can withdraw that $50,000 any time with no consequences. The earnings stay in the account under different rules.

Your Earnings: The Two-Part Test

For earnings (growth) to come out tax-free and penalty-free, two conditions must both be true:

  • Age test: You must be at least 59½ years old.
  • 5-year test: Your Roth IRA must have been established and funded for at least five tax years.

The five-year clock starts on January 1 of the first tax year for which you made a contribution, regardless of when during that year you actually contributed. If you opened and funded your first Roth IRA on December 31, 2026, the clock started on January 1, 2026, and the five-year period ends on December 31, 2030.

Exceptions to the 10% Early Withdrawal Penalty

If you withdraw earnings before 59½, the 10% early withdrawal penalty can be avoided (though income tax still applies) in certain situations: death or disability, first-time home purchase (up to $10,000 lifetime), qualified higher education expenses, health insurance premiums while unemployed, or substantially equal periodic payments under Rule 72(t).

Frequently Asked Questions

How does a Roth IRA grow? −
A Roth IRA grows through tax-free compound interest and investment returns. You contribute after-tax dollars, then invest in stocks, bonds, ETFs, or mutual funds inside the account. Dividends, capital gains, and interest all compound without annual taxation. At retirement (after age 59½ and the 5-year holding requirement), you withdraw everything, contributions and all growth, without paying any federal income tax. The longer the money remains invested, the more powerful the tax-free compounding becomes. Use the calculator above to see your projected balance at retirement based on your contribution amount and expected return.
What is the Roth IRA contribution limit for 2026? −
The 2026 Roth IRA contribution limit is $7,500 for those under age 50 and $8,600 for those age 50 or older (which includes a $1,100 catch-up contribution). This limit applies to the combined total across all IRAs, if you also have a traditional IRA, contributions to both accounts count together toward the same $7,500/$8,600 ceiling. High earners face income-based phase-outs: contributions phase out between $153,000 and $168,000 AGI for single filers, and between $242,000 and $252,000 for married filing jointly. Above the top threshold, direct Roth IRA contributions are not permitted.
How much will my Roth IRA be worth at retirement? −
Your final Roth IRA balance depends on your starting balance, annual contribution amount, investment return rate, and years invested. At the 2026 maximum contribution of $7,500 annually at a 7% return (inflation-adjusted S&P 500 average) starting at age 30 with no existing balance: by age 65, your Roth IRA balance is approximately $1.06 million, all tax-free. Starting at 25 with the same contribution and return reaches roughly $1.55 million by age 65. Starting at 40 produces approximately $530,000. Use the calculator above with your specific numbers to get your projected retirement balance.
Can I open a Roth IRA at any age? −
Yes. There is no age restriction on opening or contributing to a Roth IRA in 2026. You can contribute at any age as long as you have earned income (wages, salaries, self-employment income, or alimony) at least equal to the amount contributed, and your income falls within the eligibility range. This is different from the traditional IRA, which also allows contributions at any age. The income limit for Roth IRA eligibility is $168,000 AGI for single filers and $252,000 for married filing jointly in 2026. Workers with minor children can also open custodial Roth IRAs for their children, funded with the child's earned income.
What is the Roth IRA 5-year rule? −
The 5-year rule requires that your Roth IRA account be at least five tax years old before earnings can be withdrawn tax-free. The clock starts on January 1 of the first tax year for which you make a contribution. Opening and funding your Roth IRA by December 31, 2026 means the 5-year period ends on January 1, 2031. The 5-year rule applies only to earnings; your contributions are always available tax-free and penalty-free regardless of account age. For qualified distributions (age 59½+ and account older than 5 years), all withdrawals are completely tax-free. The 5-year rule is most relevant for people who open a Roth IRA close to retirement age.
What happens to my Roth IRA when I die? −
A Roth IRA transfers to your named beneficiaries free of income tax. Because contributions were already taxed, your heirs receive the account without an income tax bill on the growth, one of the most powerful estate planning benefits of the Roth IRA. Under the SECURE 2.0 Act, most non-spouse beneficiaries must withdraw the entire balance within 10 years of the original owner's death. Surviving spouses have more flexibility: they can roll the Roth IRA into their own Roth IRA and treat it as their own, with no required distributions during their lifetime. Since Roth IRAs have no RMDs for the original owner, a large balance can pass intact to the next generation.
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2026 Roth IRA Limits
IRS Notice 2025-67 · 2026 tax year Under 50 limit $7,500/year Age 50+ limit $8,600 ($7,500 + $1,100 catch-up) Phase-out (single) $153,000 – $168,000 AGI Phase-out (MFJ) $242,000 – $252,000 AGI Phase-out (MFS) $0 – $10,000 AGI Tax-filing deadline Contributions allowed until April 15, 2027
Roth IRA Key Rules
Contributions Always withdrawable tax-free, any time Earnings Tax-free after age 59½ + 5-year rule No RMDs Never required during your lifetime 5-year clock Starts Jan 1 of first contribution year Income limit Must have earned income to contribute Backdoor Roth Available to high earners via conversion Max annual growth S&P 500 avg ~9.5% nominal / 7% real
Roth vs. Taxable Account
$7,500/yr · 7% return · 35 years · 22% bracket Roth IRA balance ~$1,061,000 (tax-free) Taxable account balance ~$751,000 (after annual tax drag) Roth advantage ~$310,000 more Tax saved over 35 years ~$152,900 Source Calculator.net Roth IRA Calculator