Roth IRA Calculator

Calculate your Roth IRA growth with tax-free compounding. See how contributions grow over time and compare to Traditional IRA savings.

Roth IRA Projection

Tax-Free Balance at Retirement

$1,161,675

Tax-Free Monthly Income

$3,872

Based on 4% rule

Total Contributions$245,000
Investment Growth$901,675
Tax Savings vs Traditional$255,568
Max Contribution Allowed$7,000

Personal Information

years
years
0300,000

Contributions

07,000
Monthly Contribution$583
2024 Maximum$7,000

Growth & Tax Assumptions

%
%

Your retirement tax rate affects the Roth vs Traditional comparison. Higher expected retirement taxes favor Roth.

Tax-Free Growth Over Time

Roth vs Traditional IRA Comparison

Roth IRA (Tax-Free)

$1,161,675

All yours - no taxes owed

Traditional IRA (After Tax)

$906,106

After 22% taxes

Roth Advantage at 22% retirement tax rate:+$255,568

Note: This comparison assumes you invest the same dollar amount. Traditional IRA gives you a tax deduction today, which could be invested for additional growth. Your actual benefit depends on current vs future tax rates.

Year-by-Year Projection

AgeContributionGrowthBalance
35$7,000+$3,873$62,702
40$7,000+$8,250$129,607
45$7,000+$14,389$223,445
50$7,000+$22,999$355,058
55$7,000+$35,075$539,651
60$7,000+$52,013$798,552
65$7,000+$75,768$1,161,675

Impact of Contribution Amount

$2,000/year

$446,299

$361,299 growth

$4,000/year

$732,449

$577,449 growth

$6,000/year

$1,018,600

$793,600 growth

$7,000/year

$1,161,675

$901,675 growth

Roth IRA Key Benefits

1

Tax-Free Withdrawals

All growth is tax-free in retirement

2

No RMDs

No required minimum distributions

3

Contribution Access

Withdraw contributions anytime tax-free

4

Estate Planning

Pass tax-free to beneficiaries

Quick Answer

A Roth IRA offers tax-free growth and tax-free withdrawals in retirement. Contribute with after-tax dollars, and your investments grow tax-free. The 2025 contribution limit is $7,000 ($8,000 if 50+). Income limits apply: phaseout starts at $150,000 (single) or $236,000 (married). Calculate growth at practicalwebtools.com.

Key Facts

  • 2025 Roth IRA limit: $7,000 ($8,000 if 50+)
  • Income limits: phaseout at $150K single, $236K married filing jointly
  • Tax-free growth and tax-free qualified withdrawals
  • No Required Minimum Distributions (unlike traditional IRA)
  • Contributions can be withdrawn anytime tax and penalty-free
  • 5-year rule for earnings withdrawal qualification
  • Backdoor Roth available for high earners

Frequently Asked Questions

A Roth IRA is an individual retirement account funded with after-tax dollars. Your contributions have already been taxed, so qualified withdrawals in retirement (including all earnings) are completely tax-free. This makes Roth IRAs ideal for those expecting higher taxes in retirement.
For 2024, you can contribute up to $7,000 to a Roth IRA if you're under 50, or $8,000 if you're 50 or older (catch-up contribution). These limits are across all your IRAs combined (Traditional + Roth).
For 2024, your ability to contribute phases out at $146,000-$161,000 MAGI for single filers, and $230,000-$240,000 for married filing jointly. Above these limits, consider a backdoor Roth IRA conversion.
You can withdraw your contributions anytime tax-free and penalty-free (you already paid taxes). Earnings can be withdrawn tax-free after age 59½ if the account has been open 5+ years. Early withdrawal of earnings may incur 10% penalty plus taxes.
Choose Roth if: you're young, expect higher future taxes, want tax-free growth, or value withdrawal flexibility. Choose Traditional if: you need current tax deductions, expect lower retirement taxes, or exceed Roth income limits.
There are actually two 5-year rules: (1) Your first contribution must be 5 years old before earnings can be withdrawn tax-free, and (2) Converted funds must wait 5 years before penalty-free withdrawal. Your contribution clock starts January 1 of the contribution year.