Roth IRA calculator
Use this Roth IRA calculator to estimate how contributions and assumed investment returns may affect an account over time while considering eligibility, taxes, fees, and withdrawal rules.
Estimated Roth IRA balance in 30 years
- Total contributed
- $220,000
- Tax-free growth (if qualified)
- $517,348
- Estimated Roth IRA balance in 30 years
- $737,348
Roth or traditional? An advisor can run your specific case
The right answer depends on your tax bracket now vs later. Get matched with a vetted fiduciary advisor to decide.
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The short answer
A Roth IRA is funded with money you have already paid tax on; qualified withdrawals in retirement are tax-free. Enter your current balance, annual contribution, expected return and years to retirement to estimate the balance and how much of it is growth.
Roth vs traditional, in one line
Traditional accounts give you the tax break now; Roth accounts give it to you later. If you expect a higher tax rate in retirement than today, the Roth generally wins.
Rules worth knowing
Annual contribution limits apply and change most years; there is also a catch-up amount from age 50.
Direct contributions phase out above certain income levels.
You can withdraw your own contributions at any time without tax or penalty; earnings have conditions.
There are no required minimum distributions on a Roth IRA during the owner's lifetime.
What is a Roth IRA and how does it work?
A Roth IRA is a retirement account where you contribute after-tax dollars today and withdraw money tax-free in retirement. Unlike traditional retirement accounts, you pay taxes upfront, not when you take distributions.
Contributions are made with after-tax dollars, so you receive no immediate tax deduction when you fund the account.
Investment earnings grow tax-free inside the account, and qualified withdrawals in retirement are also completely tax-free.
You can withdraw your original contributions anytime without penalty, though earnings have restrictions before age 59½.
No required minimum distributions during your lifetime, unlike traditional IRAs that force withdrawals starting at age 73.
2025 Roth IRA contribution limits and income thresholds
The roth ira contribution limits 2025 allow you to contribute up to $7,000 if you're under age 50, or $8,000 if you're 50 or older. The roth ira max contribution includes a $1,000 catch-up provision for older savers.
Under age 50: $7,000 maximum annual contribution for 2025 across all IRA accounts you own.
Age 50 and older: $8,000 maximum, which includes a $1,000 catch-up contribution for older workers.
Single filers with MAGI above $165,000 cannot contribute directly; married joint filers are phased out above $246,000.
You must have earned income at least equal to your contribution amount during the tax year.
Roth IRA vs 401k: understanding the key differences
When comparing roth ira vs 401k, the main distinction is where they come from and their limits. A 401(k) is an employer-sponsored plan with much higher contribution limits—$23,000 in 2025 for workers under 50.
401(k) plans allow $23,000 in contributions for 2025; Roth IRAs permit only $7,000 for those under 50.
Employers may match 401(k) contributions, providing free money; Roth IRAs never have employer matches.
Roth IRAs offer complete investment freedom; 401(k) plans restrict you to employer-selected investment options.
You can contribute to both a workplace 401(k) and a Roth IRA in the same year.
Traditional IRA vs Roth IRA: choosing the right account
The traditional ira vs roth ira decision centers on when you pay taxes. Traditional IRAs offer upfront tax deductions—you reduce your taxable income today—but you pay ordinary income tax on all withdrawals in retirement.
Traditional IRAs reduce your taxable income now; Roth IRAs provide tax-free income in retirement instead.
Traditional IRAs require minimum distributions starting at age 73; Roth IRAs have no such requirement during your lifetime.
You can deduct traditional IRA contributions regardless of income, but Roth contributions have strict income limits.
Converting a traditional IRA to a Roth (a taxable event) can make sense in low-income years.
How to start a Roth IRA: step-by-step process
Learning how to start a roth ira takes less than an hour. First, confirm you have earned income and fall below the income limits for 2025.
Select a reputable brokerage with low fees and strong customer service; compare account minimums before applying.
Gather your Social Security number, driver's license, employment details, and bank routing information before starting the application.
Fund your account immediately via electronic transfer, then invest the cash in diversified funds—don't let it sit idle.
Set up automatic monthly contributions to build the savings habit and take advantage of dollar-cost averaging.
The formula
Balance = current × (1 + r)^t + annual contribution × [((1 + r)^t − 1) ÷ r], compounded yearly over t years.
FAQ
Model long-term contributions with the Roth IRA calculator
A Roth IRA account is funded with after-tax money, so contributions do not generally create a federal income-tax deduction. Qualified distributions can receive favorable federal tax treatment when applicable requirements are met. A projection adds planned contributions to the current balance and applies an assumed return. Market performance, fees, contribution timing, and withdrawals can make actual results materially different from the estimate.
Roth IRA contribution limits and income eligibility rules can change, so check current IRS guidance rather than relying on an older limit. When comparing a traditional IRA vs Roth IRA, consider current tax treatment, possible deductions, future distribution rules, and required minimum distribution rules. A Roth IRA vs 401k comparison should also address employer matching, investment choices, fees, creditor protections, and access to money. Complex conversion strategies may create tax consequences.
Common questions
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