Roth IRA Calculator
See how your Roth IRA grows tax-free by retirement
2024 Roth IRA Contribution Limits & Rules
| Rule | 2024 Details |
|---|---|
| Contribution limit (under 50) | $7,000 per year |
| Contribution limit (age 50+) | $8,000 per year (catch-up +$1,000) |
| Single filer income phase-out | $146,000 – $161,000 MAGI |
| Married filing jointly phase-out | $230,000 – $240,000 MAGI |
| Required minimum distributions | None — Roth IRA has no RMDs |
| Tax-free withdrawals begin | Age 59½ AND account open ≥ 5 years |
| Contribution deadline | Tax filing deadline (April 15, 2025 for 2024) |
| Must have earned income | Yes — contributions ≤ your earned income |
Starting Early Makes a Huge Difference
| Start Age | Retire at 65 | Years Investing | Total Contributed | Balance at 65 (7%) |
|---|---|---|---|---|
| 22 | 65 | 43 years | $301,000 | $1,865,000 |
| 25 | 65 | 40 years | $280,000 | $1,474,000 |
| 30 | 65 | 35 years | $245,000 | $1,002,000 |
| 35 | 65 | 30 years | $210,000 | $661,000 |
| 40 | 65 | 25 years | $175,000 | $422,000 |
| 45 | 65 | 20 years | $140,000 | $256,000 |
| 50 | 65 | 15 years | $120,000 | $149,000 |
Assumes $7,000/year contribution ($8,000/yr age 50+), 7% annual return, no starting balance.
Starting at 25 vs 35 costs you $341,000. Waiting just 10 years cuts your retirement balance by 33%, even though you only contribute $70,000 less. Compound growth on early contributions is the difference.
Roth IRA vs Traditional IRA
| Roth IRA | Traditional IRA | |
|---|---|---|
| Tax on contributions | After-tax (no deduction) | Pre-tax (deductible) |
| Tax on withdrawals | ✅ Tax-free | Taxed as income |
| RMDs required? | ❌ No RMDs ever | Yes, starting age 73 |
| Early withdrawal of contributions | ✅ Anytime, penalty-free | 10% penalty + tax |
| Best if you expect | Higher taxes in retirement | Lower taxes in retirement |
| Best for | Young earners, low brackets now | Peak earners, high brackets now |
| 2024 contribution limit | $7,000 / $8,000 (50+) | $7,000 / $8,000 (50+) |
| Income limit to contribute | Yes (phase-out above $146K single) | No limit to contribute (deduction limit applies) |
Roth IRA Withdrawal Rules
| What You Withdraw | Age < 59½ | Age ≥ 59½ + 5yr rule met |
|---|---|---|
| Contributions (your deposits) | ✅ Tax-free, no penalty | ✅ Tax-free, no penalty |
| Earnings (investment gains) | ⚠️ Income tax + 10% penalty | ✅ Tax-free, no penalty |
| Conversions (from Traditional IRA) | ⚠️ 10% penalty (if < 5 yrs) | ✅ Tax-free, no penalty |
The 5-year rule: Your Roth IRA must be at least 5 years old before earnings can be withdrawn tax-free (even after age 59½). Open your Roth IRA as early as possible — even with a small deposit — to start the 5-year clock.
Frequently Asked Questions
How much will my Roth IRA be worth at retirement?
It depends on how much you contribute and how long it grows. Contributing $7,000/year from age 25 to 65 at 7% annual return grows to about $1.47 million — all tax-free. Use the calculator above to see your specific projection.
What is the 2024 Roth IRA limit?
$7,000 per year if you're under 50. $8,000 per year if you're 50 or older (the extra $1,000 is called a "catch-up contribution"). This limit applies across all your IRAs combined.
Can I contribute to a Roth IRA if I have a 401(k)?
Yes. Roth IRA and 401(k) contribution limits are completely separate. You can max out both in the same year: $23,000 into your 401(k) plus $7,000 into your Roth IRA (2024 limits).
What return rate should I use?
Most financial planners use 6–8% as a conservative estimate for a stock-heavy portfolio. The S&P 500 has averaged ~10% historically before inflation, or ~7% after inflation. We recommend using 7% as a baseline and running scenarios at 5% and 10% to see the range.
What if my income is too high for a Roth IRA?
If your MAGI exceeds the phase-out range ($161,000 single / $240,000 married in 2024), you cannot contribute directly. However, you can use the "Backdoor Roth IRA" strategy: contribute to a non-deductible Traditional IRA, then convert it to a Roth IRA.