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Roth IRA Calculator
Roth IRA Calculator
Estimate your future tax-free retirement nest egg
$0
Tax-Free Future Balance
Completely available for withdrawal
Total Contributions
$0
Total Growth
$0
Tax Savings
$0
Accumulation Projection
About the Roth IRA Calculator
Estimate how a Roth IRA could grow until retirement. Contributions are made after tax, and qualified withdrawals are tax free.
How to use the Roth IRA Calculator
- Enter your Current Age, Retirement Age and Current Balance.
- Enter your Annual Contribution, Expected Return (%) and Current Tax Rate (%).
- Press Calculate Future Wealth.
Formula and method
FV = Balance × (1 + r)ⁿ + Contribution × ((1 + r)ⁿ − 1) ÷ r. Because withdrawals are tax free, the balance is what you can spend.
When to use the Roth IRA Calculator
- Projecting how a Roth IRA could grow with regular yearly contributions.
- Comparing the value of tax-free growth with a taxable account.
- Seeing the effect of starting contributions in your twenties versus your forties.
Common mistakes to avoid
- Assuming the contribution limit stays the same. The IRS changes it from time to time, so check the current limit.
- Contributing when your income is above the eligibility limit.
- Withdrawing investment earnings early, which can trigger taxes and penalties.
Tips
- Annual contribution limits and income limits apply and change each year.
- A Roth is attractive if you expect a higher tax rate in retirement.
- Contributions (not earnings) can usually be withdrawn any time without penalty.
Frequently Asked Questions
A Roth taxes you now and gives tax-free withdrawals later. A traditional IRA gives a deduction now and taxes withdrawals later. The better choice depends on your tax rate now versus later.
You can generally withdraw the amount you contributed at any time without tax or penalty. Earnings have stricter rules.
You need earned income, and your income must be below a limit set by the IRS each year.