Roth IRA Calculator

Current Age

Retirement Age

Annual Contribution

Maximize Contribution

Yes

Expected Rate of Return (%)

Current Marginal Tax Rate (%)

Starting Balance

Currency

Results

Roth IRA Balance at Retirement

$0.00

Total Contribution

$0.00

Taxable Account Balance at Retirement

$0.00

Schedule Table

[+]

Year	Roth IRA		Taxable Account
Year	Beginning Balance	End Balance	Beginning Balance	End Balance

Related Useful Calculator

✅ What is a Roth IRA?

We use a Roth IRA to save for retirement with after-tax contributions. We pay tax now on the money we put in, and qualified withdrawals in retirement are tax-free. Roth IRAs grow tax-free, have flexible withdrawal rules for contributions, and are great when we expect higher taxes later. You must have earned income and follow IRS contribution and income limits.

✅ Key features of a Roth IRA

After-tax contributions: we fund the account with money that’s already taxed.
Tax-free growth & withdrawals: qualified withdrawals (usually age 59½ + 5-year rule) are tax-free.
No RMDs (while original owner alive): we don’t have required minimum distributions, so money can keep growing.
Contribution limits & income rules: annual max and phaseouts apply based on age and modified adjusted gross income.
Flexible access to contributions: we can withdraw the contributions (not earnings) at any time without tax or penalty.
Good for estate planning: beneficiaries can inherit a tax-advantaged account.

These features make the Roth powerful when we expect higher taxes later, want tax diversification, or value flexible retirement withdrawals.

✅ How to use our Roth IRA calculator

Enter ages: Current Age and Expected Retirement Age — retirement must be older than current age.
Starting Balance: current Roth balance (0 if none).
Annual Contribution: type amount or choose “Maximize” to use the code’s max. Remember the calculator uses fixed max rules in code (see bug notes).
Rate of Return: expected average annual return (we test 4–8% scenarios).
Marginal Tax Rate: used to model a comparable taxable account (not the Roth).
Currency: picks display symbol for results and schedule.

✅ Examples of Roth IRA use

Young saver: we contribute $6,000/year in our 20s so growth is tax-free for decades.
Backdoor Roth: high earners convert non-deductible Traditional IRA funds into a Roth via a conversion.

✅ Who is a Roth IRA for?

We recommend a Roth for people who expect to be in the same or higher tax bracket in retirement, younger savers with long time horizons, those who want tax-free income later, or anyone seeking tax diversification. It’s also useful for those who value penalty-free access to contributions and want to avoid RMDs during their lifetime.

✅ When should we choose a Roth IRA?

We should choose a Roth when we can pay tax now and prefer tax-free withdrawals later — typically when we’re in a lower tax bracket today or expect higher taxes later. Choose Roth if we want to avoid future RMDs, want tax diversification, or have many working years for tax-free compounding.

✅ Advantages and disadvantages of a Roth IRA

Advantages

Tax-free withdrawals in retirement.
No lifetime RMDs for original owner.
We can withdraw contributions anytime without tax or penalty.
Great for long time horizons — compounding is tax-free.
Helps diversify tax risk across accounts.

Disadvantages

No upfront tax deduction (we pay tax today).
Income limits can prevent direct contributions for high earners (workarounds exist).
Conversions from Traditional IRAs can trigger taxes.
Contribution limits are relatively low compared with some employer plans.

✅ Our best opinion about Roth IRA

We view the Roth IRA as a top retirement tool for most savers, especially younger people and those who expect higher taxes later. Its tax-free growth and flexible withdrawal rules give us strong long-term advantages. We like using Roths to tax-diversify — a mix of Roth and pre-tax accounts gives us flexibility to manage taxes in retirement. For high earners, we often recommend the backdoor Roth strategy (with careful tax handling). That said, if current tax relief is critical, a Traditional IRA or 401(k) may be better. Always compare your current tax rate, expected retirement tax rate, and employer match rules, and consult a tax pro before conversions.