Roth IRA Calculator 2026
Calculate tax-free Roth IRA growth vs Traditional IRA. 2026 limits: $7,000 ($8,000 if 50+).
Contributing $7,000/year to a Roth IRA starting at age 30 at a 7% return will grow to approximately $1.07 million by age 65, fully tax-free. The 2026 Roth IRA contribution limit is $7,000 ($8,000 if 50+), with income phase-outs beginning at $150,000 (single) and $236,000 (married filing jointly).
Roth IRA Balance at Retirement
$1,035,394.22
Annual Tax-Free Withdrawals (4%)
$41,415.77
Traditional IRA (After-Tax Value)
$1,035,394.22
Roth Advantage
$-0.00
2026 Roth IRA income phase-out: $150K–$165K single, $236K–$246K married.
2026 Roth IRA income phase-out: $150K–$165K single, $236K–$246K married.
About This Calculator
A Roth IRA is a powerful retirement account where you contribute after-tax dollars and your investments grow completely tax-free. Unlike a Traditional IRA, Roth withdrawals in retirement are not taxed — which means decades of compound growth are never touched by the IRS.
The Roth IRA's core advantage is its tax treatment on growth. If you invest $7,000 today and it grows to $70,000 over 30 years, you owe zero taxes on the $63,000 gain upon qualified withdrawal. A Traditional IRA deducts the $7,000 now but taxes the entire $70,000 later.
For young earners in the 22% or lower tax bracket, Roth IRA almost always wins. The math favors Roth when (a) your current tax rate is lower than your expected retirement rate, (b) you have a long time horizon, or (c) you want tax diversification in retirement. Roth IRAs also have no required minimum distributions (RMDs), making them ideal for estate planning.
How to Use
- 1Enter your planned annual Roth IRA contribution (2026 limit: $7,000; $8,000 if age 50+).
- 2Enter your current age and planned retirement age.
- 3Set your expected annual investment return (7% is a common long-term assumption for diversified stock funds).
- 4Enter your current tax bracket to see the comparison with a Traditional IRA.
- 5Review the Roth balance, annual tax-free withdrawal amount at 4% rule, and the Roth advantage over Traditional IRA.
Formula & Methodology
Roth IRA Balance = Annual Contribution × ((1 + r)^n − 1) / r × (1 + r), where r is annual return rate and n is years to retirement. All growth is tax-free upon qualified withdrawal (age 59½+, account open 5+ years).
Frequently Asked Questions
What are the Roth IRA income limits for 2026?
For 2026, single filers can contribute the full $7,000 if their MAGI is under $150,000, with a phase-out to $0 at $165,000. Married filing jointly: full contribution under $236,000, phased out by $246,000. If you exceed limits, consider the Backdoor Roth IRA strategy.
Can I withdraw Roth IRA contributions early without penalty?
Yes — your contributions (not earnings) can be withdrawn at any time, for any reason, tax and penalty-free. Only earnings are subject to the 59½ rule and 5-year holding requirement for tax-free withdrawal.
Roth IRA vs Traditional IRA — which is better?
Roth wins if: you're in a low tax bracket now, you expect higher taxes in retirement, you have a long time horizon, or you want no RMDs. Traditional wins if: you're in a high bracket now, you expect lower taxes at retirement, or you need the immediate tax deduction. Many advisors recommend both for tax diversification.
What is the Backdoor Roth IRA?
If you exceed the income limit, you can still contribute via the Backdoor Roth: contribute to a non-deductible Traditional IRA (no income limit), then immediately convert it to a Roth IRA. The conversion triggers no additional taxes on the non-deductible contribution, though any earnings at conversion time are taxable.
Does Roth IRA have required minimum distributions?
No. Roth IRAs have no RMDs during the owner's lifetime (unlike Traditional IRAs and 401(k)s which require distributions starting at age 73). This makes Roth IRAs excellent for estate planning — you can let the account compound tax-free for your entire life.
Sources & References
Last updated: 2026-04-12