Roth IRA Calculator

It is an individual retirement account funded with money you have already paid tax on. Investments grow tax-free and qualified withdrawals in retirement are not taxed at all, which is the reverse of a traditional IRA's treatment.

A traditional IRA may give you a deduction now and taxes withdrawals later; a Roth gives no deduction now and takes nothing later. The choice hinges largely on whether you expect your tax rate in retirement to be higher or lower than it is today.

For 2026 the limit is $7,500 across all your IRAs combined, rising to $8,600 from age 50 with the $1,100 catch-up. You also cannot contribute more than your earned income for the year.

Eligibility phases out between $153,000 and $168,000 of modified AGI for single filers and heads of household, and between $242,000 and $252,000 for married couples filing jointly. Within the range the allowance shrinks proportionally; above it, direct contributions are not permitted.

Qualified withdrawals of both contributions and earnings are free of federal income tax. A withdrawal is qualified once you are 59½ or older and the account has satisfied the five-year rule.

Earnings can only be withdrawn tax-free once five tax years have passed since your first Roth contribution, in addition to meeting an age or other qualifying condition. The clock starts with your first contribution, not with each new one.

Yes. Because contributions were made with after-tax money, you may withdraw the amount you put in at any time without tax or penalty. Earnings are treated differently and can trigger both if withdrawn early.

It refers to contributing to a traditional IRA and converting it to a Roth, a route sometimes used by those above the income limits. The pro-rata rule can make it taxable if you hold other pre-tax IRA balances, so professional advice is worthwhile.

No. Unlike traditional IRAs and 401(k)s, a Roth IRA has no required minimum distributions during the original owner's lifetime, which lets the balance keep growing tax-free for as long as you choose to leave it alone.

Contributions for a given tax year may generally be made up to the federal tax filing deadline the following April, without extensions. That gives a window in which you can fund either the current or the prior tax year.

Yes. Contributions require earned income such as wages or self-employment income; investment income, pensions, and Social Security do not qualify. A working spouse can, however, fund a spousal Roth IRA for a non-working partner.

A Roth 401(k) allows far larger contributions and may attract an employer match, while a Roth IRA offers wider investment choice and no required minimum distributions. Many savers use the workplace plan up to the match and an IRA alongside it.