Roth IRA Calculator 2026
Tax-free retirement projection with 2026 limits, phase-out rules & Roth vs. Traditional comparison
A Roth IRA is a tax-advantaged individual retirement account where contributions are made with after-tax dollars — but all growth and qualified withdrawals are 100% tax-free. This calculator projects your Roth IRA balance at retirement using 2026 contribution limits ($7,000/$8,000 age 50+), enforces income phase-out rules, and compares the Roth vs. Traditional IRA outcome after taxes.
How Roth IRA Growth Is Calculated
Roth IRA growth uses standard compound interest applied annually, with contributions added at the end of each year. The tax advantage is baked into the formula: while a Traditional IRA defers taxes, all Roth growth is tax-free at withdrawal — making the effective return higher than the nominal rate in taxable or Traditional accounts.
| Variable | Definition |
|---|---|
| r | Annual return rate (historical S&P 500 average: 10%; conservative estimate: 6–7%) |
| Annual Contribution | Capped at 2026 IRS limit: $7,000 (under 50) or $8,000 (50+), reduced by income phase-out |
| Phase-Out | Contribution reduced proportionally: single $150k–$165k MAGI; MFJ $236k–$246k |
| 4% Rule | Monthly income = Final Balance × 4% ÷ 12; the standard safe withdrawal rate in retirement |
Example: A 30-year-old contributing $7,000/year to a Roth IRA, starting with $15,000, at 7% annual return for 35 years reaches $1,191,000 in tax-free wealth. Under a Traditional IRA at the same numbers, the pre-tax balance is identical — but after a 22% retirement tax, the after-tax value is only $929,000. The Roth advantage: $262,000 in tax-free extra wealth.
💡 Expert Pro-Tip
Backdoor Roth IRA — For High Earners Over the Income Limit: If your income exceeds the 2026 phase-out ($165,000 single / $246,000 MFJ), you cannot contribute directly to a Roth IRA. But you can execute a Backdoor Roth: (1) Make a non-deductible Traditional IRA contribution, (2) Convert it to a Roth IRA immediately. There's no income limit on conversions. Caution: if you have other pre-tax Traditional IRA money, the "pro-rata rule" will tax a portion of the conversion. Coordinate with a CPA before executing — done wrong, it creates unexpected tax bills.
Frequently Asked Questions: Roth IRA in 2026
What is the 2026 Roth IRA contribution limit?
The 2026 Roth IRA contribution limit is $7,000 per year ($8,000 if you're 50 or older). This limit phases out at $150,000–$165,000 MAGI for single filers and $236,000–$246,000 for married filing jointly. Above those limits, you cannot contribute directly but can use a Backdoor Roth IRA strategy.
Roth IRA vs. Traditional IRA — which is better?
Roth wins when you expect the same or higher tax rate in retirement. Traditional wins when you expect a significantly lower rate. For most 20–40-year-olds, Roth is better: tax rates are likely to rise, and tax-free compound growth over decades is extremely powerful. For high earners 50+ with plans to draw down income in retirement, Traditional can make sense.
When can I withdraw from a Roth IRA without penalty?
You can always withdraw your contributions (not earnings) penalty-free at any age. To withdraw earnings tax-free, you must be 59½ and the account must be at least 5 years old. In 2026, Roth IRAs have no Required Minimum Distributions (RMDs) during the owner's lifetime — unlike Traditional IRAs.
Can I contribute to both a Roth IRA and a 401(k)?
Yes — the contribution limits are completely separate. You can max a Roth IRA ($7,000) AND a 401(k) ($23,500) simultaneously in 2026. Maxing both is the gold standard for tax-diversified retirement income: 401(k) reduces taxes now, Roth IRA provides tax-free income in retirement.
Roth IRA Calculator
Your Information
Roth vs. Traditional Comparison
Your Roth IRA Projection
Roth wins because retirement tax rate (22%) ≥ current rate (22%).
| Year | Age | Balance |
|---|---|---|
| 2031 | 35 | $61,293 |
| 2036 | 40 | $126,222 |
| 2041 | 45 | $217,289 |
| 2046 | 50 | $345,014 |
| 2051 | 55 | $524,155 |
| 2056 | 60 | $775,409 |
| 2061 | 65 | $1,127,807 |
Based on your results — what to do next:
Maximize both accounts — Roth IRA + 401(k)
Your Roth IRA projects $1,127,807 at retirement. A 401(k) on top can double your tax-advantaged savings.
Is your total retirement on track?
$3,759/mo from Roth IRA alone — is that enough? Run a full retirement check across all accounts.
See your compound growth curve
$867,807 in tax-free growth over 35 years. Visualize the full compounding effect with different contribution rates.