Roth IRA Calculator
About Our Smart Roth IRA Calculator
Our smart calculator provides instant results and leverages AI to offer personalized insights.
Tax-Free Retirement? Yes.
The Roth IRA is a powerful wealth-building tool. You pay taxes on the money today, so you never have to pay them again—even on the earnings.
Why Calculate This?
- Project Growth: See how your post-tax contributions snowball into a massive tax-free nest egg.
- The Tax Bet: Determine if paying taxes now is better than paying them later.
- Max Out: Check if you are hitting the 2025 contribution limits ($7,000 or $8,000).
What is a Roth IRA?
A Roth IRA is a special individual retirement account where you pay taxes on money going into your account, and then all future withdrawals are tax-free.
"Tax-free" means you don't pay taxes on the growth. If you contribute $50,000 over the years and it grows to $500,000 through investments, that $450,000 profit is yours, 100% tax-free, provided you follow the withdrawal rules (usually age 59½).
Roth IRA vs. Traditional IRA: The Breakdown
The biggest decision investors face is choosing between Roth and Traditional. The math depends on your current tax rate versus your expected future tax rate.
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax Advantage | Tax-Free Withdrawals (Pay tax now) | Tax-Deductible Contributions (Pay tax later) |
| Best For... | People who expect higher taxes in retirement (or young investors). | People who expect lower taxes in retirement (peak earners). |
| RMDs (Required Distributions) | None (Keep money growing forever) | Must start withdrawing at age 73 |
2025 Contribution Limits & Eligibility
The IRS sets strict limits on how much you can contribute and who is eligible.
Contribution Limit (2025)
- Under Age 50: $7,000 per year
- Age 50+ (Catch-up): $8,000 per year
Income Limits (MAGI)
High earners cannot contribute directly to a Roth IRA.
- Single: Phase-out starts at ~$146,000
- Married: Phase-out starts at ~$230,000
How AI Analyzes Your Retirement
Click "Get AI Advice" for personalized tax strategy:
- Tax Bracket Comparison: "You are in the 12% bracket now. AI predicts your retirement bracket could be 22%. Result: Roth is likely the winner."
- Time Horizon: "With 30 years to grow, the tax-free compounding of a Roth significantly outweighs the upfront tax break of a Traditional IRA."
Important Investment Disclaimer
The results and AI-generated insights provided by this Roth IRA Calculator are for informational and educational purposes only. They are hypothetical estimates based on user inputs and assumed rates of return.
This tool does not constitute professional financial, tax, or legal advice. Tax laws (including contribution limits and income thresholds) are subject to change. Investment returns are not guaranteed and investing involves risk, including loss of principal. Please consult a qualified CPA or financial advisor before making any retirement planning decisions.
Disclaimer & Usage Policy
1. For Reference Only: The calculations, results, and AI-generated insights provided by this tool are for informational and educational purposes only. They represent theoretical outcomes based on user inputs and general assumptions. They do not constitute actionable professional advice, medical diagnosis, or specific financial recommendations.
2. Consult a Professional: Real-world scenarios are complex and subject to changing laws, regulations, and scientific standards. This tool cannot account for your unique individual circumstances. We strongly recommend consulting with a qualified professional (such as a Financial Advisor, CPA, Doctor, or Legal Counsel) before making any actual decisions based on this information.
3. No Liability: By using this tool, you acknowledge that This Website and its affiliates are not liable for any discrepancies, errors, or losses (financial, health-related, or otherwise) arising from the use of or reliance on these tools. You assume full responsibility for your own choices and actions.