Roth IRA Calculator
Calculate tax-free compound growth potential and future retirement balance of your Roth IRA with 2026 contribution limits ($7,000 / $8,000 catch-up).
Roth IRA Projection
2026 IRS limit: $7,500 a year, or $8,600 at age 50 and over.
Paying the tax now instead of later
A Roth IRA is funded with money you have already paid tax on, and qualified withdrawals come out entirely free — contributions and growth alike. A traditional IRA reverses that: you deduct the contribution now and pay income tax on everything you withdraw. The whole choice reduces to one question — will your tax rate in retirement be higher or lower than it is today?
Roth tends to win for people early in a career, whose rate is likely to rise, and for anyone expecting substantial retirement income. It also has two structural advantages traditional accounts lack: no required minimum distributions during the original owner's lifetime, so the balance can compound untouched for as long as you like, and contributions (though not growth) can be withdrawn at any time without tax or penalty, which makes it a usable emergency reserve of last resort.
The limits are the catch. Annual contributions are capped and the cap changes most years, and eligibility phases out above certain incomes — above the top of the phase-out you cannot contribute directly at all. The five-year rule is the other trap worth knowing: the account must have been open five tax years before growth can be withdrawn tax-free, regardless of your age, so opening one early with even a small amount starts that clock running.
2026 IRS Roth IRA Contribution & Income Limits
The Internal Revenue Service (IRS) sets annual contribution caps and Modified Adjusted Gross Income (MAGI) phase-out ranges for Roth IRA accounts. Below are the official parameters for the 2026 tax year.
| Tax Filing Status | Full Contribution Allowed (MAGI) | Partial Phase-Out (MAGI) | No Direct Contribution |
|---|---|---|---|
| Single / Head of Household | < $150,000 | $150,000 – $165,000 | > $165,000 |
| Married Filing Jointly | < $236,000 | $236,000 – $246,000 | > $246,000 |
| Married Filing Separately | — | $0 – $10,000 | > $10,000 |
Roth IRA vs. Traditional IRA vs. 401(k) Comparison
Understanding the tax differences between pre-tax and post-tax retirement vehicles ensures you allocate contributions to maximize long-term compounding.
| Feature | Roth IRA | Traditional IRA | 401(k) Plan |
|---|---|---|---|
| Tax on Contributions | After-tax (no upfront deduction) | Pre-tax (tax-deductible) | Pre-tax (payroll deduction) |
| Tax on Qualified Withdrawals | 100% Tax-Free | Taxed as ordinary income | Taxed as ordinary income |
| Required Minimum Distributions (RMDs) | None during lifetime | Begins at age 73 or 75 | Begins at age 73 |
| Early Withdrawal of Contributions | Penalty-Free & Tax-Free anytime | 10% IRS penalty + income tax | 10% penalty + restrictions |
| 2026 Annual Contribution Limit | $7,000 ($8,000 age 50+) | $7,000 ($8,000 age 50+) | $23,500 ($31,000 age 50+) |
Frequently asked questions
What are the 2026 Roth IRA contribution and income limits?
For 2026, the maximum Roth IRA contribution limit is $7,000 for individuals under age 50, and $8,000 for those age 50 or older (including the $1,000 catch-up contribution). Phase-out MAGI ranges are $150,000–$165,000 for single filers and $236,000–$246,000 for married couples filing jointly.
What are the primary advantages of a Roth IRA over a Traditional IRA?
With a Roth IRA, qualified retirement withdrawals are 100% tax-free. There are no Required Minimum Distributions (RMDs) during your lifetime, and original contributions can be withdrawn at any time without taxes or early withdrawal penalties.
What is a Backdoor Roth IRA and who should use it?
A Backdoor Roth IRA allows high earners above the IRS income limits to fund a Roth IRA by making a non-deductible contribution to a Traditional IRA and subsequently converting it to a Roth. Note that existing pre-tax IRA assets trigger the IRS pro-rata rule.
How does the Roth IRA five-year rule work?
Earnings can be withdrawn tax-free and penalty-free only after five tax years have elapsed from your first contribution, provided you are at least age 59½. Original contributions can always be withdrawn at any time penalty-free.
Can I have both a 401(k) and a Roth IRA at the same time?
Yes. Contributing to an employer-sponsored 401(k) does not disqualify you from opening or maxing out a Roth IRA, as long as your Modified Adjusted Gross Income (MAGI) is within the IRS eligibility thresholds.