Roth IRA Calculator

Project your Roth IRA growth and tax-free retirement income.

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Result

Fill in the fields above, then press Calculate.

The Roth IRA Calculator projects your tax-free retirement balance by retirement age and shows how much you can safely withdraw using the 4% rule. Use this to understand the power of tax-free growth and plan your retirement income strategy.

Enter your current age, target retirement age, annual contribution amount, current Roth IRA balance, and expected return. The calculator projects your tax-free balance at retirement and estimates your safe monthly withdrawal amount using the 4% rule.

Examples

Starting at Age 25 with $7,000/Year

You begin contributing the maximum $7,000 per year to a Roth IRA at age 25, earning an average 8% annual return. By age 65, your account would grow to approximately $1,864,000 — all tax-free in retirement. Using the 4% withdrawal rule, that provides about $74,560 per year in tax-free income.

Late Start at Age 40 with Catch-Up Contributions

You start contributing $7,000/year at age 40 and increase to $8,000/year at age 50 (catch-up contributions). With a 7% average annual return, your Roth IRA would reach approximately $525,000 by age 65, providing about $21,000/year in tax-free withdrawals.

Frequently Asked Questions

What are the Roth IRA contribution limits?
For 2024, the contribution limit is $7,000 per year ($8,000 if age 50 or older). Income limits apply: single filers with MAGI above $161,000 have reduced limits, and above $176,000 cannot contribute directly.
Why is a Roth IRA beneficial?
Roth IRA contributions are made with after-tax dollars, but all qualified withdrawals in retirement are completely tax-free. This includes all investment growth, making it especially powerful for long time horizons.
When can I withdraw from a Roth IRA?
Contributions can be withdrawn anytime without penalty. Earnings can be withdrawn tax-free after age 59 1/2 if the account has been open for at least 5 years. Roth IRAs have no required minimum distributions (RMDs).
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Quick Tips

  • •Maximize your annual Roth contribution before age 59.5 whenever possible. The tax-free growth compounds powerfully over decades.
  • •If you exceed income limits for direct Roth contributions, consider a "backdoor Roth" conversion (contribute to Traditional, then convert to Roth).
  • •Roth contributions (not earnings) can be withdrawn penalty-free at any time, providing emergency liquidity.
  • •At age 50, you can contribute an extra $1,000/year in catch-up contributions.
  • •The 4% rule is conservative; in strong markets, you may safely withdraw more. In downturns, withdraw less to protect principal.