2026-08-07 9 min
Roth IRA Calculator
Estimate the tax-free growth of a Roth IRA and compare it with a regular taxable account, including annual schedules, balance accumulation charts, and tax savings analysis.
Calculator
Current balance
$
Annual contribution
$
Fixed at IRS limit $7,500Maximize contributions?
Yes No
Expected rate of return
%
Current age
Retirement age
Marginal tax rate
%
Results update live as you type
Result
| Balance at age 65 | $1,429,648.39 |
| Taxable account (after tax) | $1,122,867.75 |
| Total principal contributed | $292,500.00 |
| Total tax-free growth | $1,137,148.39 |
| Tax savings vs taxable account | $306,780.65 |
| Tax on taxable account | $234,206.29 |
Annual Schedule
| Age | Roth Start | Roth End | Taxable Start | Taxable End |
|---|---|---|---|---|
| 30 | $30,000.00 | $40,125.00 | $30,000.00 | $39,600.00 |
| 31 | $40,125.00 | $50,958.75 | $39,600.00 | $49,872.00 |
| 32 | $50,958.75 | $62,550.86 | $49,872.00 | $60,863.04 |
| 33 | $62,550.86 | $74,954.42 | $60,863.04 | $72,623.45 |
| 34 | $74,954.42 | $88,226.23 | $72,623.45 | $85,207.09 |
| 35 | $88,226.23 | $102,427.07 | $85,207.09 | $98,671.59 |
| 36 | $102,427.07 | $117,621.96 | $98,671.59 | $113,078.60 |
| 37 | $117,621.96 | $133,880.50 | $113,078.60 | $128,494.10 |
| 38 | $133,880.50 | $151,277.14 | $128,494.10 | $144,988.69 |
| 39 | $151,277.14 | $169,891.54 | $144,988.69 | $162,637.90 |
| 40 | $169,891.54 | $189,808.94 | $162,637.90 | $181,522.55 |
| 41 | $189,808.94 | $211,120.57 | $181,522.55 | $201,729.13 |
| 42 | $211,120.57 | $233,924.01 | $201,729.13 | $223,350.17 |
| 43 | $233,924.01 | $258,323.69 | $223,350.17 | $246,484.68 |
| 44 | $258,323.69 | $284,431.35 | $246,484.68 | $271,238.61 |
| 45 | $284,431.35 | $312,366.54 | $271,238.61 | $297,725.31 |
| 46 | $312,366.54 | $342,257.20 | $297,725.31 | $326,066.09 |
| 47 | $342,257.20 | $374,240.20 | $326,066.09 | $356,390.71 |
| 48 | $374,240.20 | $408,462.02 | $356,390.71 | $388,838.06 |
| 49 | $408,462.02 | $445,079.36 | $388,838.06 | $423,556.73 |
| 50 | $445,079.36 | $484,259.91 | $423,556.73 | $460,705.70 |
| 51 | $484,259.91 | $526,183.11 | $460,705.70 | $500,455.10 |
| 52 | $526,183.11 | $571,040.93 | $500,455.10 | $542,986.95 |
| 53 | $571,040.93 | $619,038.79 | $542,986.95 | $588,496.04 |
| 54 | $619,038.79 | $670,396.51 | $588,496.04 | $637,190.76 |
| 55 | $670,396.51 | $725,349.26 | $637,190.76 | $689,294.12 |
| 56 | $725,349.26 | $784,148.71 | $689,294.12 | $745,044.70 |
| 57 | $784,148.71 | $847,064.12 | $745,044.70 | $804,697.83 |
| 58 | $847,064.12 | $914,383.61 | $804,697.83 | $868,526.68 |
| 59 | $914,383.61 | $986,415.46 | $868,526.68 | $936,823.55 |
| 60 | $986,415.46 | $1,063,489.54 | $936,823.55 | $1,009,901.20 |
| 61 | $1,063,489.54 | $1,145,958.81 | $1,009,901.20 | $1,088,094.28 |
| 62 | $1,145,958.81 | $1,234,200.93 | $1,088,094.28 | $1,171,760.88 |
| 63 | $1,234,200.93 | $1,328,619.99 | $1,171,760.88 | $1,261,284.14 |
| 64 | $1,328,619.99 | $1,429,648.39 | $1,261,284.14 | $1,357,074.03 |
Results
Optimal
Balance at age 65
$1,429,648.39
Tax-free Roth IRA balance at retirement
Taxable account (after tax)
$1,122,867.75
Taxable balance minus capital gains tax
Total principal contributed
$292,500.00
Original after-tax dollars you put in
Total tax-free growth
$1,137,148.39
Earnings that have grown without tax
Tax savings vs taxable account
$306,780.65
Extra wealth from avoiding capital gains tax
Tax on taxable account
$234,206.29
Estimated tax paid on taxable account earnings
Estimates assume a fixed annual return with on-time yearly contributions, and tax all ordinary taxable gains at one marginal rate. Returns are not guaranteed.
Visualizations
Roth IRA: Principal vs Tax-Free Growth
Roth contributions20%
Tax-free growth80%
Roth IRA Balance by Age
Roth Advantage Over Taxable
Roth gain track306,781
Formula
Each year the Roth IRA balance grows by the annual after-tax contribution plus the previous balance, all multiplied by one plus the annual rate of return. The taxable account adds the same contributions but its growth is reduced by the marginal tax rate on gains at the end of the projection.
Balance(y) = (Balance(y-1) + Contribution) × (1 + r)
Alternative Form
Taxable Tax = (Taxable Balance − Principal) × Marginal Rate; Difference = Roth Balance − (Taxable Balance − Tax)
Variables
| Symbol | Name | Unit | Description |
|---|---|---|---|
| C | Annual contribution | $ | Adjusted to the $7,500 IRS limit when "Maximize contributions" is enabled |
| r | Annual rate of return | % | Expected long-term nominal return (default 7%) |
| n | Years until retirement | years | Retirement age minus current age |
| B0 | Current balance | $ | Existing Roth or taxable savings |
| t | Marginal tax rate | % | Tax bracket used on taxable account gains |
| Δ | Roth advantage | $ | Roth balance minus after-tax taxable balance |
Explanation
Because Roth contributions are made with after-tax dollars, none of the growth is ever taxed. The taxable account hypothetically invests the same after-tax amount, yet each year its gain is potentially taxed as it is realized. Over decades the compounding of untaxed growth creates a wide advantage even at moderate tax rates.
Derivation
Each year y: Roth[y] = (Roth[y-1] + Contribution) × (1 + r) with Roth[0] = B0. The taxable account accumulates the same after-tax contributions but its realized earnings are taxed annually at rate t. At retirement the taxable balance is reduced by the tax owed on its total growth, and the difference is Roth Balance − (Taxable Balance − Tax).
Step-by-Step Calculation
Follow each step to understand how the result is calculated from your inputs.
Step 1
Fix the amount contributed each year. When the "maximize" toggle is on the 2026 limit of $7,500 is used.
Contribution = max-out ? $7,500 : Annual contribution
Option:Max out ($7,500/yr)
Annual contribution:$7,500.00
Intermediate: Contribution = $7,500 (2026 limit)
Result: $7,500 contributed each year until age 65
Step 2
Project the Roth IRA balance year by year: each year adds the contribution then applies the rate of return.
Roth[y] = (Roth[y-1] + Contribution) × (1 + r)
Starting balance:$30,000.00
Years:35
Intermediate: Starting balance grows and adds $7,500.00 per year at 7%
Result: Roth balance reaches $1,429,648.39 by age 65
Step 3
Track the total principal you contributed so the growth can be separated from the contributions.
Principal = Current Balance + Contribution × Years
Current balance:30000
Contributions:35 × $7,500.00
Intermediate: Principal = $30,000.00 + $262,500.00
Result: Total principal = $292,500.00
Step 4
Compute the tax-free growth as the difference between the Roth balance and the total principal.
Growth = Roth Balance − Principal
Roth balance:$1,429,648.39
Principal:$292,500.00
Intermediate: Growth = $1,429,648.39 − $292,500.00
Result: Tax-free growth = $1,137,148.39
Step 5
Run the same contributions through a taxable account assuming gains are taxed at your marginal rate.
Taxable = ((Taxable[y-1] × (1+r)) + Contribution) each year, then Tax = (Total − Principal) × t
Taxable balance held:$292,500.00
Tax rate:%
Taxable balance:$1,357,074.03
Intermediate: Tax = $1,064,574.03 × 0.22
Result: After-tax taxable balance = $1,122,867.75
Step 6
Subtract the taxable after-tax balance from the Roth balance to measure your lifetime tax savings.
Difference = Roth Balance − Taxable (after tax)
Roth balance:$1,429,648.39
Taxable (after tax):$1,122,867.75
Intermediate: Difference = $1,429,648.39 − $1,122,867.75
Result: Roth saves $306,780.65 over a taxable account at age 65
Final Answer
$1,429,648.39
Worked Examples
See how the calculator works with different scenarios.
Scenario
A 40-year old starts with $30,000 already invested, maxes the $7,500 limit each year, earns 7% annually, and retires at 65.
Inputs
Current balance:$30,000
Contribution:$7,500/yr
Rate:7%
Age now/retire:40 / 65
Tax rate:22%
Calculation
Years = 65 − 40 = 25 Principal = 30,000 + 7,500 × 25 = $217,500 Balance grows to roughly $1,019,000 at 7% Growth = 1,019,000 − 217,500 = $801,500
Result
Nearly $1,019,000 tax-free, with more than $800,000 of it being untaxed growth
Interpretation
Maxing out early lets compound growth do the heavy lifting. You paid tax only on the dollars you contributed; every gain was untouched by the IRS.
Understanding Your Result
Your Result: Balance at age 65: $1,429,648.39
Typical range: A common 25-year, $7,500/yr, 7% scenario grows to roughly $560,000 to $750,000 depending on the start balance and tax rate. Roth advantage over taxable typically ranges from 15% to 30% of the total balance.
What This Means
The headline number is the full tax-free balance at withdrawal. Beside it you learn how much you contributed (principal), how much grew (earnings), what tax your taxable account would owe, and exactly how many hundreds of thousands of dollars the tax-free wrapper keeps in your pocket.
Why It Matters
Roth IRAs are the only retirement account with completely tax-free withdrawals and no required minimum distributions. Even small annual contributions can vault past a taxable account simply because the growth is never taxed.
Professional Interpretation
Financial planners often 1st max a 401(k) match, then max the Roth IRA, then return to other savings. The Roth's combination of tax-free growth, tax-free withdrawals, and no RMDs make it one of the most flexible vehicles available.
The 5-year rule
You must wait 5 tax years and be past age 59½ before earnings are withdrawn tax-free. Direct contributions can always come out tax-free and penalty-free at any time.
Income phase-outs
Direct contributions phase out above $168,000 MAGI (single) or $252,000 (married) in 2026. The backdoor Roth conversion avoids these limits.
Taxable account drag
When a fund in a taxable account pays dividends or realizes gains annually, tax is owed each year, clipping the compounding base repeatedly.
Recommendations
- •Max your Roth IRA before funding a taxable brokerage account for retirement savings
- •Fully fund early — decades of untaxed compounding beat attempting to catch up later
- •Increase contributions with inflation; today's $7,500 limit is indexed over time
- •Roll elective-match oddly-401(k) dollars to a Roth (pay tax, get tax-free forever)
- •For estate planning, an inherited Roth still passes tax-free to your beneficiaries
- •Keep an emergency fund separate and let the Roth compound untouched for retirement
Educational Content
Introduction
The Roth IRA Calculator shows how focusing on after-tax money compounds into a giant tax-free retirement fund. Most planners call Roth IRAs the single best long-term wrapper an average saver can hold.
Concept Explanation
A Roth IRA is funded with after-tax dollars, so every withdrawal — including all the growth — is tax-free after a 5-year aging rule. The calculator projects the Roth balance year by year and lays the same contributions into an ordinary taxable account so you can see the tax drag that the Roth avoids.
Applications
▸Comparing Roth IRA versus taxable brokerage growth
▸Projecting retirement balances from regular annual contributions
▸Testing "maximize contributions" with the current IRS limit
▸Buckett target balances for a specific retirement age
▸Seeing how cost high-tax investors should tilt to a Roth
▸Planning contributions between 22% and 24% brackets and the Roth benefits
▸Checking the value of converting a traditional IRA to a Roth IRA
Benefits
- •Tax-free growth and tax-free qualified withdrawals
- •No required minimum distributions (RMDs) during your life
- •Contributions withdrawable anytime without penalty or tax
- •Estate-friendly: heirs receive balances tax-free
- •No annual tax reporting for moves inside the IRA
- •Runs 100% tax-free compounding versus taxable tax drag
Limitations
- •No upfront tax deduction for your contribution
- •Income limit prevents higher earners from direct contributions
- •Fixed annual maximum ($7,500 in 2026, $8,600 if 50+)
- •The 10% penalty hits early franchise earnings withdrawals
- •Returns are estimates, never guarantees
Best Practices
- •Maximize every year, trapped, the IRS limit acts as a contribution cap
- •Start with current balances and adjust returns to a realistic long-term number
- •Re-run projections annually as your salary and plan grow
- •Pair a Roth with an employer 401(k) match for diversification
- •Never borrow against the growth — let it compound tax-free
Common Misconceptions
Myth: Roth IRAs are only for the rich.
Truth: The income limit blocks high earners, but most Americans qualify — and the "backdoor" conversion keeps high earners in a Roth later.
Myth: Contributions to a Roth tax-deductible with funds.
Truth: Roth contributions are after-tax. The tax-advantages arrive only at the end: the growth is tax-free.
Myth: All Roth withdrawals are tax-free anytime.
Truth: Direct contributions are always free from tax, but earnings require age 59½ plus the 5-year rule.
Myth: A Roth and a 401(k) share one limit.
Truth: They are separate limits. You can fully max both the same year (subject to income limits on the Roth side).
Practical Tips
- •Max-out the annual contribution: each $7,500 today compounds 47, of tax-free growth over 30 years
- •Choose investments that answer the longest timeline, like total-market index funds inside the Roth
- •Pay the tax on a Roth conversion in a low-income year to lock in cheap after-tax dollars
- •Fund the Roth before taxable savings for every retirement dollar
- •Keep Roth contributions in cash-claim terms in your bucket strategy for penalty-free access
- •Check annual income phase-outs and switch to backdoor conversion if you phase out
Common Mistakes
Investing in a taxable account before maxing the Roth
Tax-free compounding beats taxable dollars every time; fund the Roth first.
Treating Roth as a risky "extra" account
Right principal and long growth make it the biggest contributor to your net worth.
Ignoring the 5-year window before withdrawing earnings
Accept the 5-year aging clock is required before earnings become tax-free.
Withdrawing gains from a Roth early with a 10% penalty
Leave growth alone until 59½ or a qualified reason to avoid taxes and penalties.
Basing the projection on an unrealistic 10%+ return
Use 5-8% fund manager expectations and model inflation-adjusted.
Using the tool without considering inflation
A 7% nominal projection should win, but subtract ~2-3% to see real spending power.
Assumptions
This calculator makes the following assumptions to provide estimates:
Constant return: A single annual rate applies every year (default 7%), ignoring the natural variance of markets.
No fees or taxes inside: The Roth pays no taxes on gains; plan fees or fund expense ratios are not modeled.
Contributions counted from age now: Contributions begin immediately, before any interest accrues mid-year.
Taxable gains realized at the end: The taxable account effectively reassesses gains into one longitudinal tax at the end rather than each year.
Static marginal rate: One marginal tax rate applies to all taxable growth.
IRS limit constant: The $7,500 "maximize" value is held constant, expected to climb with inflation.
Limitations
Be aware of these limitations when using this calculator:
Single-rate modeling: Real portfolios spread across asset classes and rebalancing are not simulated.
Does not model RMD flows: Traditional now against Roth here (though Roth itself has none).
Taxes simplified: Capital gains are taxed as ordinary income at one marginal rate, ignoring brackets and holding periods.
No inflation adjustment: Balances are nominal dollars; subtract inflation to see buying power.
No 401(k) plans: Only Roth and a plain taxable account are compared.
Frequently Asked Questions
Answers to common questions about this calculator.
What is a Roth IRA?
A Roth IRA is a type of Individual Retirement Arrangement (IRA) that provides tax-free growth and tax-free income in retirement. Contributions are made with after-tax dollars, and qualified withdrawals (after age 59½ with the account open at least 5 years) are completely tax-free.
What are the contribution limits for 2026?
The contribution limit in 2026 is $7,500 for those aged 49 and below, and $8,600 for those aged 50 and above (including catch-up contributions). Income phase-out limits apply: $168,000-$178,000 for single filers and $252,000-$262,000 for married filing jointly.
Can I withdraw contributions anytime without penalty?
Yes. Direct contributions to a Roth IRA can be withdrawn tax-free and penalty-free at any time, for any reason. However, earnings withdrawn before age 59½ or before the account is 5 years old may be subject to both income taxes and a 10% early withdrawal penalty.
What is the difference between Roth IRA and traditional IRA?
Roth IRA contributions are made with after-tax dollars and qualified withdrawals are tax-free. Traditional IRA contributions may be tax-deductible in the year they are made, but all withdrawals in retirement are taxed as ordinary income. Traditional IRAs also have Required Minimum Distributions (RMDs) starting at age 73.
Are there required minimum distributions (RMDs) for Roth IRAs?
No. Roth IRAs are the only tax-sheltered retirement plans that do not impose required minimum distributions during the account holder's lifetime. This makes Roth IRAs excellent vehicles for estate planning, as the funds can continue growing tax-free indefinitely.
Can I have both a Roth IRA and a 401(k)?
Yes, you can contribute to both a Roth IRA and a 401(k) in the same year. However, your Roth IRA contribution limit is subject to your modified adjusted gross income (MAGI). Contributing to both allows you to maximize your tax-advantaged retirement savings across multiple accounts.
What is the 5-year rule for Roth IRAs?
The 5-year rule states that the Roth IRA account must be open for at least 5 tax years before earnings can be withdrawn tax-free. The 5-year period starts on January 1 of the tax year for which your first contribution was made. This rule applies regardless of your age.
Can I convert a traditional IRA to a Roth IRA?
Yes, you can convert any amount from a traditional IRA to a Roth IRA at any time. You will owe income tax on the pre-tax amount converted in the year of conversion. There are no income limits for Roth conversions. Once converted, the funds grow tax-free with no future RMDs.
What happens to a Roth IRA when the owner dies?
Roth IRAs can be passed to beneficiaries. Spousal beneficiaries can treat the inherited Roth IRA as their own. Non-spouse beneficiaries must take distributions over their lifetime (or within 10 years under the SECURE Act). Distributions to beneficiaries are generally tax-free.
Is Roth IRA better than traditional IRA?
Roth IRAs are generally better if you expect to be in a higher tax bracket in retirement or if you value tax-free withdrawals. Traditional IRAs are better if you want an upfront tax deduction and expect to be in a lower tax bracket in retirement. For most young investors, Roth IRAs are recommended.
What is the income limit for Roth IRA contributions?
For 2026, the Roth IRA contribution phases out starting at $168,000 MAGI for single filers and $252,000 for married filing jointly. Once MAGI reaches $178,000 (single) or $262,000 (married), contributions are not allowed. Married filing separately has a phase-out range of $0-$10,000.
Can I contribute to a Roth IRA if I have a 401(k)?
Yes, you can contribute to both a Roth IRA and a 401(k) in the same year. However, your Roth IRA contribution limit is subject to your modified adjusted gross income (MAGI). Contributing to both allows you to maximize your tax-advantaged retirement savings across multiple accounts.
What is the penalty for early Roth IRA withdrawal of earnings?
Withdrawing earnings before age 59½ or before the 5-year rule is met triggers a 10% early withdrawal penalty plus income taxes on the earnings portion. However, exceptions exist for first-time home purchases ($10,000 limit), qualified education expenses, and certain hardship situations.
Can I use a Roth IRA for a first-time home purchase?
Yes, you can withdraw up to $10,000 of earnings penalty-free for a first-time home purchase if the account has been open for at least 5 years. Contributions can always be withdrawn without penalty. The $10,000 limit is a lifetime limit across all Roth IRA accounts.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a strategy for high-income earners who exceed the Roth IRA income limits. It involves making a non-deductible contribution to a traditional IRA and then converting it to a Roth IRA. There are no income limits on Roth conversions, making this a legal loophole.
Can I withdraw my Roth IRA contributions at any time?
Yes, direct contributions to a Roth IRA can be withdrawn at any time, for any reason, completely tax-free and penalty-free. This is one of the key advantages of Roth IRAs over traditional IRAs and 401(k)s, providing a level of flexibility that makes Roth IRAs useful as a backup emergency fund.
What investments can I hold in a Roth IRA?
Roth IRAs can hold a wide range of investments including stocks, bonds, mutual funds, ETFs, REITs, and CDs. Self-directed Roth IRAs can even hold real estate, private equity, and precious metals. However, certain collectibles like art, antiques, and life insurance are prohibited.
How does a Roth IRA affect my taxes?
Roth IRA contributions do not provide a tax deduction in the year they are made. However, all qualified withdrawals in retirement are completely tax-free, including both contributions and earnings. This can be especially valuable if you expect to be in a higher tax bracket in retirement.
Can I have multiple Roth IRA accounts?
Yes, you can have multiple Roth IRA accounts, but the total annual contribution limit across all accounts is the same as for a single account ($7,500 in 2026, or $8,600 if 50+). Having multiple accounts can be useful for different investment strategies or beneficiary designations.
What happens if I contribute too much to a Roth IRA?
Excess contributions are subject to a 6% penalty each year until withdrawn. To avoid the penalty, you must withdraw the excess contribution (and any earnings) before the tax filing deadline (including extensions). Earnings on excess contributions are also subject to income tax.
Is a Roth IRA good for young investors?
Roth IRAs are particularly beneficial for young investors because they are typically in lower tax brackets now, making after-tax contributions cheaper. Decades of tax-free compounding can create substantial wealth. Young investors also benefit from the flexibility of penalty-free contribution withdrawals.
What is the difference between a Roth IRA and a Roth 401(k)?
Roth IRAs have lower contribution limits ($7,500 vs $24,500 in 2026) but offer more investment options and no RMDs. Roth 401(k)s have higher limits, employer matching potential, but limited investment choices and required RMDs. Both offer tax-free qualified withdrawals.
Can a non-working spouse have a Roth IRA?
Yes, a non-working spouse can contribute to a Roth IRA based on the working spouse's income, as long as they file jointly. The total combined contributions cannot exceed the working spouse's compensation or the annual limit, whichever is less. This is known as a spousal IRA.
What is the Saver's Credit for Roth IRA contributions?
The Saver's Credit is a tax credit worth up to 50% of retirement contributions (including Roth IRA) for low-to-moderate-income taxpayers. The maximum credit is $1,000 ($2,000 for married filing jointly). Income limits and filing status determine eligibility for this non-refundable credit.
How do I open a Roth IRA?
You can open a Roth IRA at most brokerage firms, banks, credit unions, and robo-advisors. The process is simple: choose a provider, complete an application, fund the account, and select your investments. Many providers offer no minimums and low-fee index fund options.
What is the deadline for Roth IRA contributions?
Roth IRA contributions for a given tax year can be made from January 1 of that year until the tax filing deadline (typically April 15) of the following year. This means you have over 15 months to make contributions for any particular tax year.
Can I roll over a 401(k) into a Roth IRA?
Yes, you can roll over a 401(k) into a Roth IRA, but you will owe income tax on the pre-tax amount rolled over. Many people do this strategically in low-income years to minimize the tax impact. Once in the Roth IRA, the funds grow tax-free with no future RMDs.
How does the SECURE Act affect Roth IRAs?
The SECURE Act changed the distribution rules for inherited IRAs. Non-spouse beneficiaries must now withdraw all funds within 10 years of the original owner's death (the 10-year rule). Roth IRA beneficiaries still receive distributions tax-free but within the 10-year timeframe.
What is the difference between a Roth IRA and a taxable brokerage account?
Roth IRA investments grow tax-free and withdrawals are tax-free in retirement. Taxable brokerage accounts offer no tax advantages — you pay taxes on dividends, interest, and capital gains each year. However, taxable accounts have no contribution limits or withdrawal restrictions.
Can I use a Roth IRA for education expenses?
Roth IRA earnings can be withdrawn penalty-free for qualified higher education expenses, though income taxes still apply on the earnings portion. Contributions can always be withdrawn tax-free and penalty-free for any purpose, making Roth IRAs flexible for education funding.
What is the Roth IRA catch-up contribution for those over 50?
In 2026, the catch-up contribution for those aged 50 and older is an additional $1,100, bringing the total limit to $8,600. Under the SECURE 2.0 Act, catch-up contributions are indexed for inflation and may have different rules depending on income levels.
Should I max out my Roth IRA every year?
Maxing out a Roth IRA is an excellent goal if you can afford it. The $7,500 annual limit represents one of the best ways to save for retirement tax-free. Financial advisors often recommend contributing at least enough to get any employer 401(k) match, then maxing out a Roth IRA.
What is the Roth IRA phase-out range for married filing separately?
For married filing separately in 2026, the Roth IRA contribution phases out between $0 and $10,000 of MAGI. This low threshold effectively prevents most married couples filing separately from contributing directly to a Roth IRA, though the backdoor Roth strategy remains available.
Can I use a Roth IRA for estate planning?
Roth IRAs are excellent estate planning vehicles because they have no RMDs during the owner's lifetime, allowing tax-free growth indefinitely. Heirs inherit Roth IRAs tax-free (though the SECURE Act's 10-year rule applies to non-spouse beneficiaries). This makes Roth IRAs ideal for passing wealth to the next generation.
What is the difference between a Roth IRA conversion and a contribution?
A contribution is depositing new money into a Roth IRA up to the annual limit ($7,500 in 2026). A conversion moves existing pre-tax retirement funds (from a Traditional IRA or 401(k)) into a Roth IRA, with no limits on the amount. Conversions trigger income tax on the converted amount but have no income restrictions.
Related Calculators
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Related Guides
Deepen your understanding with these educational resources.
Roth IRA Contribution Limits and Phases
How much you can contribute, income phase-outs, and the $10,000 phase-out range.
Roth vs Traditional IRA Decision Guide
Which account maximizes your bucket of money in retirement.
Backdoor Roth Conversion Walkthrough
Step-by-step ways to fund a Roth even above the income limit.
Glossary
Technical terms used in mortgage calculations explained in plain language.
- Roth IRA
- An individual retirement account funded with after-tax dollars that provides tax-free qualified withdrawals.
- Traditional IRA
- An IRA which contributions may be deductible now but withdrawals are taxed in retirement.
- Tax-free growth
- Investment earnings that chart inside a Roth account without ever being taxed.
- Marginal tax rate
- The rate paid on your last dollar of income, used to model tax on regular savings gains.
- MAGI
- Modified adjusted gross income, the figure used to determine Roth IRA eligibility.
- Contribution Limit
- The maximum ($7,500 in 2026, $8,600 at 50+) that may be deposited each year.
- Catch-up Contribution
- An extra allowance for savers aged 50 and over, currently $1,100.
- 5-Year Rule
- You must wait 5 tax years before the Roth earnings can be withdrawn tax-free.
- RMD
- Required Minimum Distribution — required to take from traditional IRAs from age 73. Roth IRAs have none.
- Conversion (backdoor)
- Moving pre-tax money into a Roth IRA and paying income tax on the converted sum.
- Taxable Account
- A regular brokerage account whose dividends and realized gains are taxable each year.
Authoritative References
Trusted sources and standards referenced by this calculator.
IRS — Roth IRAs IRS — Publication 590-A (IRA Contributions) CFPB — Roth IRA Fidelity — Roth IRA Guide Vanguard — Roth IRA Investopedia — Roth IRA
Applicable Standards
IRS Tax Form 590-AU.S. Internal Revenue Code § 408ASECURE Act 2.0 (2022)
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Page Information
Last Updated:
2026-08-07
Version:
2.0.0
References:
License:
Free to use for educational and professional purposes.