Roth IRA Calculator

The short answer

• In 2026 you can put up to $7,500 in a Roth IRA, or $8,600 if you are 50 or older.
• The limit phases out between $153,000 and $168,000 of modified AGI for single filers, and $242,000 to $252,000 for married couples filing jointly.
• $7,500 a year for 35 years at 7% grows to about $1,125,659, of which $863,159 is growth you never pay tax on.
• Your contributions can come out at any time; earnings are tax-free from 59½ once the account is five years old.

What a Roth IRA is

An individual retirement account (IRA) is a tax-advantaged account you open yourself at a bank, brokerage or robo-adviser, separate from any workplace plan. A Roth IRA is funded with money you have already paid tax on. In return, the investments grow without yearly tax, and qualified withdrawals in retirement, including all the growth, are completely tax-free.

That makes it very different from a regular brokerage account, where you pay tax on dividends each year and on gains when you sell, and from a traditional IRA, where you may get a deduction now but pay income tax on every dollar you take out.

The 2026 contribution limit

The IRA limit rose to $7,500 for 2026, up from $7,000. If you are 50 or older by December 31, 2026, you can add a catch-up of $1,100, which is now indexed for inflation, for $8,600 in total. The limit is shared across all your IRAs: if you put $3,000 in a traditional IRA, you can put at most $4,500 in a Roth for the same year.

Income limits and the phase-out

Unlike a traditional IRA, a Roth IRA has income limits. They are based on your modified adjusted gross income (MAGI), which for most people is close to the adjusted gross income on line 11 of Form 1040. Below the start of the range you can contribute the full amount; above the end, nothing directly.

Not sure of your AGI? Our federal income tax calculator works it out from your income and deductions.

Working out a reduced contribution

Inside the range, the IRS reduces your limit in proportion to how far through it you are. It then rounds up to the next $10, and if the result is above $0 but below $200, you may still contribute $200.

For a married couple filing jointly with MAGI of $245,000, each spouse under 50 can put in $5,250. Lowering your MAGI, for example by putting more into a traditional 401(k), can lift you back under the range.

You need earned income

You can only contribute up to your earned income for the year: wages, salaries, tips and net self-employment income. Interest, dividends, rental income, pensions and Social Security don’t count. A student who earns $4,000 from a summer job can contribute $4,000, not $7,500. There is no lower age limit, so teenagers with a job can have a custodial Roth IRA.

How much a Roth IRA can grow

Over 35 years you put in $262,500 and growth adds about $863,159. In a Roth, none of that growth is taxed when it comes out after 59½. The longer the time, the bigger the share that is growth, which is why a Roth is especially valuable for younger savers. See how compounding builds with our compound interest calculator.

Roth IRA vs a taxable account

The calculator compares the same saving in a Roth IRA and in an ordinary brokerage account with the same return. In the taxable account, dividends are taxed every year and the gain is taxed when you sell. The tax you pay along the way also stops that money compounding.

At the 20% long-term gains rate the advantage grows to about $187,752. If you would pay 0% on dividends and gains, the two come out the same, which is why a Roth matters most to people who expect to pay tax on investment income. Our capital gains tax calculator shows which rate applies to you.

Roth or traditional IRA

If your tax rate in retirement is likely to be the same as or higher than today, the Roth usually leaves you better off. If you are in a high bracket now and expect a much lower one later, a deductible traditional IRA may win. Many people hedge by having both kinds of money.

Taking money out

Withdrawals come out in a set order, which works in your favor:

1. Contributions first. Always tax- and penalty-free, at any age.
2. Conversions next, oldest first. The converted amount isn’t taxed again, but a 10% penalty can apply if you are under 59½ and the conversion is under five years old.
3. Earnings last. Tax-free once you are 59½ and the five-year rule is met. Otherwise taxed, usually with a 10% penalty.

Exceptions allow penalty-free (and sometimes tax-free) access to earnings for disability, death and up to $10,000 for a first home. Because contributions can always come out, some people treat part of a Roth as a backup emergency fund, though money taken out can’t be put back except within the yearly limit.

The five-year rules

1. April 15, 2027First contribution, for tax year 2026

   The clock starts on January 1, 2026, the start of the tax year it counts for.

2. January 1, 2031Five tax years complete

   From now, earnings are tax-free if you are also 59½ (or another exception applies).

The five-year clock for earnings starts with your first contribution to any Roth IRA and never restarts, so opening one early, even with a small amount, is worthwhile. Each conversion has its own separate five-year clock, but it only matters for the 10% penalty if you are under 59½.

The backdoor Roth IRA

If your income is above the limit, there is a well-known route in. Anyone with earned income can contribute to a traditional IRA, and anyone can convert a traditional IRA to a Roth. So you:

1. Contribute $7,500 (or $8,600 at 50+) to a traditional IRA, without taking a deduction. Report it on Form 8606.
2. Convert it to your Roth IRA, usually soon after so there is little growth to tax.
3. Pay tax only on any growth between the two steps.

The pro-rata trap

When you convert, the IRS looks at all your traditional, SEP and SIMPLE IRA balances together on December 31. If you have $67,500 of pre-tax IRA money and add a $7,500 after-tax contribution, only 10% of any conversion is tax-free; the rest is taxed as income. Rolling old pre-tax IRA money into a current 401(k), if your plan allows it, is a common way to clear the way for a clean backdoor Roth.

Using a Roth IRA with a 401(k)

A common order for retirement saving is:

1. Contribute to your 401(k) up to the full employer match.
2. Fund a Roth IRA up to your limit.
3. Go back to the 401(k) toward its $24,500 limit.
4. Then a health savings account if eligible, and a taxable account.

Our 401(k) calculator shows what the workplace part could reach, and the retirement calculator checks whether the total is enough.

Deadlines and timing

You can contribute for 2026 from January 1, 2026 to the filing deadline, April 15, 2027 (extensions don’t extend it). Contributing early in the year gives the money more time to grow; spreading it monthly is fine too and matches what the calculator assumes. If you don’t yet know your final income for the year, waiting until you do avoids putting in too much.

If you put in too much

An excess contribution, for example because your income turned out higher than expected, is charged a 6% excise tax for every year it stays in the account. Fix it before your filing deadline by withdrawing the excess and the earnings on it (the earnings are taxable), or by recharacterizing the contribution as a traditional IRA contribution, which can then be converted.

Spousal Roth IRAs

A spouse with little or no income can still have a Roth IRA if you file jointly. Together you can contribute up to $15,000 (more with catch-ups) as long as your joint earned income covers it and your MAGI is under $242,000 for full contributions. Each IRA is owned by one person; there are no joint IRAs.

What to invest in

A Roth IRA is an account, not an investment. Money sitting in its cash option earns very little. Because growth is tax-free, many people hold their highest-growth investments, such as broad stock index funds or a target-date fund, in their Roth. The calculator’s 7% is a long-run assumption for a mostly stock portfolio; markets can fall sharply in any year.

Common mistakes

• Opening the account but never investing the cash.
• Contributing when your income is over the limit, then paying the 6% tax.
• Ignoring the pro-rata rule on a backdoor Roth.
• Taking out earnings before 59½ and five years.
• Waiting for the perfect time; the five-year clock starts only when you contribute.

Converting to a Roth IRA

You can convert money from a traditional IRA or an old 401(k) to a Roth IRA at any income. The amount converted is added to your taxable income for the year, so a big conversion can push you into a higher bracket. Many people convert in years when their income is low, for example after retiring and before Social Security and required minimum distributions start, spreading conversions over several years to stay in a lower bracket. Converted money can’t be switched back to a traditional IRA.

Why a Roth suits young savers

Early in a career, income and tax brackets are usually lower, so the tax you give up by choosing Roth is small. And the earlier you start, the more of the final balance is growth. $7,500 a year for 40 years at 7% grows to about $1,640,508, of which $300,000 is your own money. Starting 20 years later, with 20 years of saving, gives about $325,579. Even small contributions in your twenties also start the five-year clock.

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