Free Roth IRA Calculator - Plan Your Tax-Free Retirement
Calculate Roth IRA growth, compare with Traditional IRA, check income eligibility, and visualize your tax-free retirement savings with our comprehensive calculator.
Personal Information
Enter your details for accurate Roth IRA projections
Contribution Limits & Eligibility
Your Roth IRA contribution status
Eligible for Contributions
You are eligible for full Roth IRA contributions.
Max Contribution (2025)
$7,000
Base limit
Catch-Up Contributions Coming Soon
Starting at age 50, you'll be able to contribute an additional $1,000 per year.
Retirement Projections
Your Roth IRA at retirement
Roth IRA Balance
$1,035,394
At age 65
Tax-Free Withdrawal
$1,035,394
100% tax-free in retirement
Traditional IRA (After Tax)
$1,035,394
After retirement taxes
Growth Over Time
Watch your tax-free retirement savings grow
Year-by-Year Breakdown
Detailed projection of your Roth IRA growth
| Age | Year | Roth Balance | Traditional Balance | Roth Advantage |
|---|---|---|---|---|
| 30 | 1 | $7,490 | $9,603 | $2,113 |
| 31 | 2 | $15,504 | $19,877 | $4,373 |
| 32 | 3 | $24,080 | $30,871 | $6,792 |
| 33 | 4 | $33,255 | $42,635 | $9,380 |
| 34 | 5 | $43,073 | $55,222 | $12,149 |
| 35 | 6 | $53,578 | $68,690 | $15,112 |
| 36 | 7 | $64,819 | $83,101 | $18,282 |
| 37 | 8 | $76,846 | $98,520 | $21,674 |
| 38 | 9 | $89,715 | $115,019 | $25,304 |
| 39 | 10 | $103,485 | $132,673 | $29,188 |
| 40 | 11 | $118,219 | $151,563 | $33,344 |
| 41 | 12 | $133,985 | $171,775 | $37,791 |
| 42 | 13 | $150,853 | $193,402 | $42,548 |
| 43 | 14 | $168,903 | $216,543 | $47,639 |
| 44 | 15 | $188,216 | $241,303 | $53,087 |
| 45 | 16 | $208,882 | $267,797 | $58,915 |
| 46 | 17 | $230,993 | $296,145 | $65,152 |
| 47 | 18 | $254,653 | $326,478 | $71,825 |
| 48 | 19 | $279,968 | $358,934 | $78,965 |
| 49 | 20 | $307,056 | $393,662 | $86,606 |
| 50 (Catch-up eligible) | 21 | $336,040 | $430,821 | $94,781 |
| 51 | 22 | $367,053 | $470,581 | $103,528 |
| 52 | 23 | $400,237 | $513,124 | $112,887 |
| 53 | 24 | $435,743 | $558,645 | $122,902 |
| 54 | 25 | $473,735 | $607,353 | $133,618 |
| 55 | 26 | $514,387 | $659,470 | $145,083 |
| 56 | 27 | $557,884 | $715,236 | $157,352 |
| 57 | 28 | $604,426 | $774,905 | $170,479 |
| 58 | 29 | $654,226 | $838,751 | $184,525 |
| 59 (59½ qualified withdrawals) | 30 | $707,511 | $907,066 | $199,554 |
| 60 | 31 | $764,527 | $980,163 | $215,636 |
| 61 | 32 | $825,534 | $1,058,377 | $232,843 |
| 62 | 33 | $890,811 | $1,142,066 | $251,254 |
| 63 | 34 | $960,658 | $1,231,613 | $270,955 |
| 64 | 35 | $1,035,394 | $1,327,428 | $292,034 |
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Important Disclaimer
This calculator provides estimates for Roth IRA planning. Eligibility and contribution limits are based on 2025 IRS rules and may change annually. Actual investment returns may vary based on market performance, investment choices, and fees. Tax benefits depend on your individual circumstances and current tax laws. This tool is for educational purposes only and should not replace professional tax or financial advice. Consult a qualified tax professional or financial advisor regarding your specific situation.
How to Use This Roth IRA Calculator
- 1
Enter Your Personal Details
Start with your current age, retirement age, and filing status. These basics help us determine your eligibility and contribution limits.
- 2
Check Income Eligibility
Enter your Modified Adjusted Gross Income (MAGI) to check if you're eligible for Roth IRA contributions based on 2025 income limits.
- 3
Set Contributions and Tax Brackets
Input your planned annual contribution, expected return rate, and tax brackets (current and retirement) for accurate comparisons.
- 4
Review Results and Compare
See your projected Roth IRA balance, tax-free withdrawals, and optionally compare with Traditional IRA to see your tax savings.
What is a Roth IRA?
A Roth IRA (Individual Retirement Account) is a powerful retirement savings vehicle that offers tax-free growth and tax-free withdrawals in retirement. Unlike Traditional IRAs where you get a tax deduction upfront but pay taxes on withdrawals, Roth IRAs are funded with after-tax dollars but grow completely tax-free—and qualified withdrawals are never taxed.
Named after Senator William Roth who championed the legislation in 1997, Roth IRAs have become one of the most attractive retirement savings options, especially for younger investors who expect to be in higher tax brackets in retirement. The power of tax-free compounding over decades can result in hundreds of thousands of dollars in tax savings.
Key benefits: Tax-free growth, tax-free qualified withdrawals after age 59½, no Required Minimum Distributions (RMDs) during your lifetime, contributions can be withdrawn anytime without penalty (though earnings cannot), and the ability to pass tax-free wealth to heirs. These advantages make Roth IRAs exceptionally valuable for long-term wealth building.
Roth IRA vs Traditional IRA: Key Differences
Choosing between Roth and Traditional IRA depends on your current income, expected future tax rate, and retirement timeline. Here's a comprehensive comparison:
Roth IRA
- ✓Contributions: After-tax dollars (no upfront deduction)
- ✓Growth: 100% tax-free forever
- ✓Withdrawals: Tax-free after 59½ (if account open 5+ years)
- ✓RMDs: None during your lifetime
- ✓Income Limits: Yes ($146K-$161K single, $230K-$240K married in 2025)
- ✓Best for: Young earners, those expecting higher future tax rates, long time horizons
Traditional IRA
- •Contributions: Pre-tax (tax deduction now)
- •Growth: Tax-deferred
- •Withdrawals: Taxed as ordinary income
- •RMDs: Required at age 73
- •Income Limits: No contribution limits, but deduction limited if covered by employer plan
- •Best for: High current earners, need tax deduction now, expect lower retirement tax rate
Decision Framework: Which Should You Choose?
- Choose Roth if: You're young (more time for tax-free compounding), in a low tax bracket now, expect income/taxes to rise, want tax-free legacy for heirs, or value flexibility (no RMDs).
- Choose Traditional if: You need the tax deduction now (high current tax bracket), expect lower retirement income/tax rate, or income exceeds Roth limits.
- Do both: Many experts recommend splitting contributions for tax diversification—hedge against unknown future tax rates.
2025 Roth IRA Contribution Limits
The IRS sets annual contribution limits for Roth IRAs and adjusts them periodically for inflation. Understanding these limits is crucial for maximizing your tax-advantaged retirement savings:
| Age Group | 2025 Contribution Limit |
|---|---|
| Under 50 | $7,000 |
| 50 and older (with catch-up) | $8,000 |
Catch-up contributions provide an extra $1,000 per year for savers age 50 and older. This additional allowance helps those approaching retirement accelerate their savings. Over 10 years at 7% annual returns, that extra $1,000/year grows to approximately $13,800—significant additional tax-free retirement income.
Important note: The $7,000/$8,000 limit is a combined limit across ALL your IRAs (Roth and Traditional). You can't contribute $7,000 to a Roth and another $7,000 to a Traditional in the same year. However, you can split contributions between them (e.g., $4,000 Roth + $3,000 Traditional = $7,000 total).
2025 Roth IRA Income Limits & Phase-Out Rules
Roth IRAs have income eligibility limits based on your Modified Adjusted Gross Income (MAGI) and filing status. If you earn too much, your contribution limit is reduced (phase-out range) or eliminated entirely:
| Filing Status | Phase-Out Range (2025) |
|---|---|
| Single / Head of Household | $146,000 - $161,000 |
| Married Filing Jointly | $230,000 - $240,000 |
| Married Filing Separately | $0 - $10,000 |
Below Phase-Out: Full Contribution
If your MAGI is below the lower limit (e.g., $146,000 for single filers), you can contribute the full $7,000 ($8,000 if 50+). No restrictions apply.
In Phase-Out Range: Reduced Contribution
If your MAGI falls within the phase-out range (e.g., $146,000-$161,000 for single), your contribution limit is proportionally reduced. For example, at $153,500 (midpoint), you can contribute roughly half the normal limit (~$3,500).
Above Phase-Out: Ineligible
If your MAGI exceeds the upper limit (e.g., $161,000+ for single filers), you cannot make direct Roth IRA contributions. However, you can use a backdoor Roth IRA strategy—contribute to a Traditional IRA (no income limits) then immediately convert to Roth.
What is MAGI? Modified Adjusted Gross Income is your Adjusted Gross Income (AGI) from your tax return, with certain deductions added back. For most people, MAGI ≈ AGI. Check IRS Form 1040 instructions or consult a tax professional to calculate your exact MAGI.
The 5-Year Rule Explained
The 5-year rule is a critical Roth IRA requirement that determines when you can take tax-free and penalty-free withdrawals of earnings (not contributions—those can always be withdrawn penalty-free). There are actually two 5-year rules:
5-Year Rule #1: Qualified Distributions
To withdraw earnings tax-free and penalty-free, you must:
- Be age 59½ or older, AND
- Have had the Roth IRA open for at least 5 tax years
Example: You open a Roth IRA in 2025 at age 57. Even though you turn 59½ in 2027, you must wait until 2030 (5 years after 2025) to take tax-free earnings withdrawals. The clock starts January 1 of the year you make your first Roth contribution.
5-Year Rule #2: Roth Conversions
Each Roth conversion (from Traditional IRA/401(k) to Roth) has its own 5-year waiting period to avoid the 10% early withdrawal penalty, regardless of your age. This prevents people from converting and immediately withdrawing to dodge the penalty.
Contributions Can Always Be Withdrawn
Your direct Roth IRA contributions (not earnings or converted amounts) can be withdrawn anytime, at any age, for any reason, tax-free and penalty-free. This flexibility makes Roth IRAs versatile—though withdrawing contributions defeats the purpose of long-term compounding.
Qualified vs Non-Qualified Withdrawals
Understanding withdrawal rules helps you maximize Roth IRA benefits and avoid unexpected taxes or penalties:
Qualified Distributions (Tax & Penalty Free)
A withdrawal is qualified if you meet BOTH:
- ✓Account open 5+ years, AND
- ✓Age 59½+, OR disabled, OR first-time home purchase (up to $10K), OR death
Result: Completely tax-free and penalty-free withdrawal of contributions AND earnings.
Non-Qualified Distributions
Withdrawals that don't meet qualified criteria:
- •Contributions: Always penalty-free and tax-free
- •Earnings: Subject to income tax + 10% penalty if under 59½
- •Conversions: 10% penalty if withdrawn within 5 years
Result: Contributions come out tax/penalty-free first, then conversions, then earnings (taxed + penalized).
Withdrawal Order (Pro-Rata Rule Does NOT Apply)
Unlike Traditional IRAs, Roth IRAs use "FIFO" (First In, First Out) ordering for withdrawals:
- Contributions come out first (always tax/penalty-free)
- Conversion amounts come out next (5-year rule applies for penalty)
- Earnings come out last (qualified distribution rules apply)
This ordering is highly favorable—it means you can access contributions in emergencies without tax consequences, while earnings continue growing tax-free.
Frequently Asked Questions
What is the Roth IRA contribution limit for 2025?
For 2025, you can contribute up to $7,000 to a Roth IRA if you're under age 50. If you're 50 or older, you can contribute an additional $1,000 catch-up contribution, for a total of $8,000. This limit applies across all your IRAs combined—you can't contribute $7,000 to a Roth and another $7,000 to a Traditional IRA in the same year. These limits are periodically adjusted for inflation by the IRS.
Should I choose Roth or Traditional IRA?
Choose Roth if: You're young or in a low tax bracket now and expect higher income/tax rates in retirement. Roth IRAs offer decades of tax-free compounding and tax-free withdrawals. Choose Traditional if: You're in a high tax bracket now and need the immediate tax deduction, or you expect lower income/taxes in retirement. Best strategy: Many financial advisors recommend splitting contributions between both for tax diversification—hedge against unknown future tax rates. If your employer offers a 401(k) match, max that first (free money), then contribute to a Roth IRA.
What are the 2025 income limits for Roth IRA?
For 2025, Roth IRA contribution eligibility phases out based on MAGI: Single filers: $146,000-$161,000 (full contribution below $146K, reduced $146K-$161K, ineligible above $161K). Married Filing Jointly: $230,000-$240,000. Married Filing Separately: $0-$10,000 (very limited). If you exceed these limits, consider a backdoor Roth IRA—contribute to a non-deductible Traditional IRA (no income limits) then immediately convert to Roth. This legal strategy allows high earners to access Roth benefits. Consult a tax professional to execute correctly.
Can I withdraw my Roth IRA contributions anytime?
Yes! Your direct Roth IRA contributions (not earnings) can be withdrawn anytime, at any age, for any reason, completely tax-free and penalty-free. However, earnings on those contributions face taxes and potential 10% penalty if withdrawn before age 59½ and before the account has been open 5 years. Withdrawal ordering: contributions come out first, then conversions, then earnings. While this flexibility is valuable for emergencies, avoid withdrawing if possible—the power of Roth IRAs is decades of tax-free compounding. Every dollar withdrawn loses decades of potential tax-free growth.
What is the Roth IRA 5-year rule?
The 5-year rule states you must have had your Roth IRA open for at least 5 tax years before you can withdraw earnings tax-free, even if you're over 59½. The clock starts January 1 of the year you make your first contribution. Example: First contribution in 2025 → can withdraw earnings tax-free starting 2030. Important: This rule applies to earnings, not contributions—your contributions can always be withdrawn penalty-free. There's also a separate 5-year rule for each Roth conversion. Start your Roth IRA early to minimize the impact of this rule!
Does Roth IRA have required minimum distributions (RMDs)?
No! Roth IRAs do not have Required Minimum Distributions (RMDs) during your lifetime. This is a huge advantage over Traditional IRAs (RMDs at age 73) and 401(k)s. Your Roth IRA can continue growing tax-free for as long as you live, and you're never forced to withdraw. This makes Roth IRAs excellent for: (1) extended tax-free growth if you don't need the money, (2) estate planning (pass tax-free wealth to heirs), and (3) flexibility in retirement (withdraw only what you need). Beneficiaries who inherit Roth IRAs do face RMD rules but still enjoy tax-free withdrawals.
Can I have both a Roth IRA and a 401(k)?
Absolutely! You can contribute to both a Roth IRA and a 401(k) in the same year—they have separate contribution limits. In 2025: 401(k): $23,000 ($30,500 if 50+), Roth IRA: $7,000 ($8,000 if 50+). Combined max: $30,000+ per year in tax-advantaged savings! Recommended strategy: (1) Contribute to 401(k) up to employer match (free money), (2) Max out Roth IRA ($7,000), (3) Return to 401(k) to max it out ($23,000). This approach captures employer match, maximizes Roth tax-free growth, and maximizes total retirement savings. You can also have a Roth 401(k) if your employer offers it.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a legal strategy for high earners to access Roth IRA benefits despite exceeding income limits. Process: (1) Contribute to a Traditional IRA (no income limits on contributions, just deductibility), (2) Immediately convert that Traditional IRA to a Roth IRA, (3) Pay taxes on any earnings between contribution and conversion (usually minimal if done immediately). Result: You now have money in a Roth IRA growing tax-free. Caution: The "pro-rata rule" applies if you have existing pre-tax IRA balances—consult a tax professional to avoid unexpected tax bills. This strategy works best if you have no other Traditional IRA assets.