A Roth IRA is one of the most powerful retirement accounts available to US savers — and it works in reverse to a traditional retirement plan. Instead of getting a tax deduction today, you fund it with after-tax dollars, and in exchange every dollar of growth comes out completely tax-free in retirement (once the account is at least five years old and you're 59½ or older). Your original contributions can even be withdrawn at any time, tax- and penalty-free.
For 2026, the IRS allows up to $7,500 per year across all your IRAs combined — or $8,600 if you're 50 or older, thanks to the $1,100 catch-up contribution. High earners face income phase-outs: direct contributions shrink as your MAGI rises and disappear entirely at $168,000 (single / head of household) or $252,000 (married filing jointly). This calculator applies the exact 2026 phase-out bands to your income and filing status, then projects your account year by year with monthly compounding — including the bigger catch-up limits that kick in once you turn 50.
The math rewards starting early. A 30-year-old maxing out a Roth at $7,500 a year with an 8% average return reaches roughly $1.1 million tax-free by age 65 — most of it growth you will never owe tax on. Wait until 40 to start and the same plan yields barely half that.
How to use the Roth IRA Calculator
- Enter your current age and target retirement age — the calculator compounds each year's contributions separately.
- Add your current Roth balance if you already have one (enter 0 if you're starting fresh).
- Set your annual contribution. If it exceeds the IRS limit for your age, the calculator caps it automatically and tells you your real maximum.
- Pick an expected return: ~8% matches long-run stock market averages; use less for a conservative plan.
- Choose your filing status and enter your income to check direct-contribution eligibility — the result shows full, partial, or no eligibility.
- Click Calculate my Roth IRA for your projected tax-free balance, total contributions, and investment growth.
Tips for accurate results
- Your contribution can never exceed your earned income for the year — freelancers and students with low earnings are limited by that, not the IRS cap.
- The $7,500 / $8,600 limit is shared across all Traditional and Roth IRAs you own. Two accounts don't mean two limits.
- Once you turn 50, the $1,100 catch-up applies for the entire tax year — even if your birthday is in December.
- If your income is over the phase-out range, look into the "backdoor Roth" strategy instead of skipping the account.
Roth IRA vs. Traditional IRA
The choice comes down to when you want the tax break. A Traditional IRA may give you a deduction today but taxes every dollar you withdraw. A Roth IRA gives no deduction but guarantees tax-free withdrawals later. If you expect to be in the same or a higher tax bracket in retirement — or you simply value certainty — the Roth usually wins, especially for younger savers who get decades of tax-free compounding.
Frequently asked questions
What is a Roth IRA?
A Roth IRA is an individual retirement account funded with after-tax dollars. You get no upfront tax deduction, but qualified withdrawals — including all investment growth — come out completely tax-free in retirement.
How much can I contribute to a Roth IRA in 2026?
For 2026 the IRS allows $7,500 if you are under 50, or $8,600 if you are 50 or older (a $1,100 catch-up contribution). The limit is shared across all your Traditional and Roth IRAs combined.
What happens if I earn too much for a Roth IRA?
Direct contributions phase out as your modified adjusted gross income (MAGI) rises. For 2026, the phase-out range is $153,000–$168,000 for single and head-of-household filers, and $242,000–$252,000 for married couples filing jointly. Above that range, a backdoor Roth strategy is still available.
What is the Roth IRA 5-year rule?
To withdraw earnings tax-free, the account must be open for at least five years AND you must be 59½ or older (or meet a qualifying exception such as disability). Your original contributions can always be withdrawn tax- and penalty-free at any time.
Do Roth IRAs have required minimum distributions?
No. Unlike Traditional IRAs and 401(k)s, the original owner of a Roth IRA never faces required minimum distributions, so the account can keep growing tax-free for as long as you like.