Roth IRA Calculator

$7,500 for 2026, plus a $1,100 catch-up if you're 50 or older (IRS Notice 2025-67). The limit is shared across all your traditional and Roth IRAs combined, and you need earned income at least equal to your contribution.

Timing of the tax. Traditional: deduct now, pay income tax on withdrawals. Roth: no deduction now, but qualified withdrawals — contributions AND decades of growth — are completely tax-free after 59½ (with the account 5+ years old). Roth also has no required minimum distributions during your lifetime.

Yes — the ability to contribute phases out at higher incomes (the ranges adjust annually; check the IRS page for the current year's thresholds for your filing status). High earners often use the 'backdoor Roth' — a non-deductible traditional IRA contribution converted to Roth — with a tax professional's guidance.

Your contributions (not earnings) can come out any time, tax- and penalty-free — a flexibility no 401(k) offers. Earnings withdrawn early are generally taxed plus a 10% penalty, with exceptions like a first-home purchase (up to $10,000). The best move is still to leave it compounding.

The standard order: 401(k) up to the full employer match (free money), then Roth IRA to the limit (tax-free growth plus flexibility and better fund choices), then back to the 401(k). Adjust if you have high-interest debt or expect unusual tax circumstances.