Roth IRA Calculator

Calculate your Roth IRA growth potential with tax-free withdrawals in retirement and compound interest projections

Roth IRA Calculator

Ready to Calculate

Enter your Roth IRA details to see projections and tax-free retirement benefits.

How to Use This Calculator

1

Enter Your Current Age

Start by entering your current age. This determines how many years you have to grow your Roth IRA before retirement.

2

Set Retirement Age

Choose when you plan to retire. Remember, you can withdraw Roth IRA contributions anytime, but earnings should stay until age 59½ to avoid penalties.

3

Input Current Roth IRA Balance

Enter how much you currently have in your Roth IRA account. If you're just starting, you can enter 0.

4

Enter Annual Contribution

Input how much you plan to contribute annually. For 2024, the limit is $7,000 (or $8,000 if you're 50+) subject to income limits.

5

Set Expected Return

Enter the expected annual return on your Roth IRA investments. Conservative: 5-7%, Moderate: 7-9%, Aggressive: 9-11%.

6

Consider Inflation

Include inflation rate to see the real purchasing power of your retirement savings in today's dollars.

7

Review Tax Benefits

Analyze your projected tax-free retirement income and the compound growth potential of your Roth IRA.

8

Plan Your Strategy

Use the results to optimize your contribution strategy and retirement planning timeline.

Roth IRA Investment Tips

1

Start contributing to a Roth IRA as early as possible to maximize the power of tax-free compound growth

2

Contribute the maximum allowed amount each year ($7,000 for 2024, $8,000 if 50+) to optimize tax advantages

3

Consider your current vs. expected retirement tax bracket when choosing between Roth and traditional IRA

4

Take advantage of the 5-year rule: contributions can be withdrawn anytime, but earnings need to season for 5 years

5

Roth IRAs have no required minimum distributions, making them excellent for estate planning

6

If your income is too high for direct Roth IRA contributions, consider a backdoor Roth conversion

7

Diversify your Roth IRA investments across different asset classes to manage risk and optimize returns

8

Keep contributing even if you can only afford small amounts - consistency builds wealth over time

9

Consider converting traditional IRA funds to Roth during low-income years to minimize tax impact

10

Remember that Roth IRA withdrawals in retirement are tax-free, providing valuable tax diversification

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