Roth IRA calculator for 2026. Contribution limits $7,000 ($8,000 if 50+), income limits, and tax-free growth projections.
Assumes constant return rate. Does not account for inflation, taxes, or Social Security. For illustrative purposes only.
The Roth IRA is one of the most powerful retirement accounts available because qualified withdrawals in retirement are entirely tax-free — including all investment gains. In 2026, you can contribute up to $7,000 per year ($583/month), or $8,000 if you're 50 or older. These limits apply per person, so a married couple can contribute up to $14,000 or $16,000 combined per year.
Income limits apply for direct Roth IRA contributions in 2026. Single filers with MAGI below $150,000 can contribute the full amount; phase-out begins at $150,000 and phases out completely at $165,000. Married filing jointly: full contribution below $236,000, phase-out between $236,000–$246,000. If you exceed these limits, the backdoor Roth IRA (nondeductible traditional IRA contribution + conversion) remains available for high earners.
The biggest benefit of a Roth is tax-free growth and withdrawal. $7,000/year invested for 30 years at 7% grows to approximately $693,000 — and none of that is taxed upon withdrawal if you follow the rules. The equivalent in a traditional IRA would face ordinary income tax rates when withdrawn, potentially costing $100,000+ in taxes over retirement.
Roth IRAs also have no Required Minimum Distributions during the owner's lifetime, making them ideal for estate planning and for managing taxable income in retirement. You can leave a Roth to heirs who can continue tax-free growth (with 10-year distribution requirements for most non-spouse beneficiaries under current law).
Strategic Roth conversions — converting traditional IRA funds to Roth during lower-income years — can significantly reduce lifetime tax liability. Prime conversion windows: early retirement years before Social Security begins, years with large deductions, or years with capital loss carryforwards.
$7,000/year if under 50, $8,000/year if 50 or older. Income limits: single filers phase out between $150,000–$165,000 MAGI; married filing jointly phase out between $236,000–$246,000. If you exceed these limits, consider the backdoor Roth IRA strategy.
A backdoor Roth IRA is a strategy for high earners who exceed the income limits for direct Roth contributions. You make a nondeductible contribution to a traditional IRA (no income limit), then convert it to a Roth IRA. The pro-rata rule can complicate this if you have other traditional IRA balances — consult a tax advisor.
Roth IRA contributions (not earnings) can be withdrawn at any time, tax and penalty free. Earnings are tax and penalty free after age 59½ AND after the account has been open at least 5 years. If you withdraw earnings before meeting both conditions, you may owe taxes and a 10% penalty, with exceptions for first home purchase, disability, and others.