A Roth IRA lets you invest after-tax dollars so your money grows completely tax-free, and qualified withdrawals in retirement are never taxed. Our calculator estimates your future balance based on contributions, investment returns, and time horizon—factoring in 2024 IRS income limits and phase-outs.
For 2024, you can contribute up to $7,000 per year to a Roth IRA, or $8,000 if you are age 50 or older. Contributions are limited by your earned income and subject to income phase-outs.
Single filers with a modified adjusted gross income (MAGI) below $146,000 can contribute the full amount. The contribution phases out between $146,000 and $161,000. Married filing jointly phases out between $230,000 and $240,000 (2024 limits).
Qualified withdrawals—meaning both the account must be at least 5 years old and you must be 59½ or older—are 100% tax-free and penalty-free. Contributions (not earnings) can be withdrawn at any time without penalty.
No. Unlike traditional IRAs and 401(k) accounts, Roth IRAs have no required minimum distributions (RMDs) during the owner's lifetime, making them powerful estate-planning and wealth-transfer tools.
High earners above the income limit can make a non-deductible traditional IRA contribution and then convert it to a Roth IRA—known as a backdoor conversion. The pro-rata rule may apply if you have other pre-tax IRA funds.
Both offer tax advantages, but a 401(k) has much higher contribution limits ($23,000 vs $7,000 in 2024) and may include employer matching. A Roth IRA offers more investment flexibility, no RMDs, and tax-free withdrawals. Ideally, use both.