Roth IRA Calculator
Compare the growth potential of a Roth IRA versus a regular taxable account
Investment Details
Understanding Roth IRAs
Roth IRA Benefits
Roth IRAs offer several advantages for retirement savings:
- • Tax-free growth and withdrawals in retirement
- • No required minimum distributions (RMDs)
- • Flexible withdrawal options for contributions
- • Tax diversification in retirement
- • Estate planning benefits
Key Considerations
Important factors to consider when choosing a Roth IRA:
- • Contributions are made with after-tax dollars
- • Income limits may restrict eligibility
- • Annual contribution limits apply
- • Five-year rule for tax-free earnings withdrawal
- • Current vs. future tax rate expectations
2025 Contribution Limits
$7,000 for those under 50, and $8,000 for those 50 and older (catch-up contribution).
Income Limits
Phase-out starts at $165,000 for single filers and $246,000 for married filing jointly.
Long-term Growth
Tax-free compound growth can lead to significantly higher retirement savings over time.