Roth IRA Calculator
This Roth IRA calculator determines your contribution eligibility and projects tax-free growth for the year. Enter your age, filing status and MAGI (Modified Adjusted Gross Income) to receive your 2025 maximum contribution limit, which may be reduced by income phase-outs (the Roth contribution is phased out between $150,000 and $165,000 MAGI for single filers, and $236,000 to $246,000 for married filing jointly). The calculator then projects your Roth IRA balance at retirement using your starting balance, annual contribution and expected return, showing the total tax-free growth alongside a comparison to a Traditional IRA with equivalent contributions and tax rates. Key results include your eligibility status (fully eligible, partially eligible after phase-out, or ineligible), your maximum contribution after any phase-out reduction, total contributions and tax-free growth over the period, and the Roth advantage over Traditional in dollars. Since Roth withdrawals are tax-free and not subject to required minimum distributions during the account owner's lifetime, this tool helps assess the long-term tax benefits of after-tax contributions for high earners and younger savers.
Contributing $7,000/year to a Roth IRA starting at age 35, at 7%/year for 30 years, projects a tax-free balance of -- at retirement.
How the Roth IRA calculation works
This calculator applies three steps: first, it checks your eligibility and reduces the contribution limit if your MAGI falls within the phase-out range (using the formula in IRS Publication 590-A). Second, it projects future value using the standard compound growth formula. Third, it compares the Roth outcome to a Traditional IRA with the same contribution and return, applying your expected retirement tax rate to the Traditional balance.
reduced limit = max($200, round_down_10(full_limit x (1 - (MAGI - phase_start) / phase_range)))
FV = current_balance x (1 + r)^n + contrib x ((1 + r)^n - 1) / r
Traditional after-tax FV = FV x (1 - retirement_tax_rate)
2025 Roth IRA contribution limits and phase-outs
| Filing status | Phase-out starts | Phase-out ends |
|---|---|---|
| Single / HOH | $150,000 | $165,000 |
| Married filing jointly | $236,000 | $246,000 |
| Married filing separately | $0 | $10,000 |
The maximum annual contribution is $7,000 for taxpayers under 50, or $8,000 for those aged 50 and older (including a $1,000 catch-up contribution). These limits are set by IRS Rev Proc 2024-40.
Key advantages of a Roth IRA
Unlike a Traditional IRA, a Roth IRA has no required minimum distributions (RMDs) during the owner's lifetime under current law. This makes it a useful estate planning vehicle: the account can continue to grow tax-free and is passed to beneficiaries (who are generally required to take distributions within 10 years under the SECURE Act). Roth IRA contributions (not earnings) can also be withdrawn at any time, at any age, without tax or penalty, because they were made with after-tax dollars.
Roth IRA vs Traditional IRA: comparison
The Roth vs Traditional decision largely depends on whether your tax rate is higher now or in retirement. If higher now, deferring tax with a Traditional IRA is advantageous. If higher in retirement, paying tax now with a Roth is better. The calculator above shows the after-tax outcome of each option using the same contribution, return, and your estimated retirement tax rate.
Note that the comparison above uses a simplified model that does not account for state income taxes, Social Security benefit taxation, Medicare premium surcharges (IRMAA), or the impact of RMDs on Traditional IRA balances. A tax adviser can run a more complete analysis for your situation.
Roth IRA calculator: frequently asked questions
What is a Roth IRA?
A Roth IRA is an individual retirement account funded with after-tax dollars. Contributions are not tax-deductible, but qualified withdrawals of both contributions and earnings are completely tax-free. Because you pay tax on contributions now, you owe no further federal income tax on the growth, no matter how large the account grows. Rules are set by IRS Publication 590-A and 590-B.
What are the income limits for Roth IRA contributions in 2025?
For 2025, single filers and heads of household with MAGI below $150,000 can contribute the full $7,000 ($8,000 if age 50 or older). The ability to contribute phases out between $150,000 and $165,000 and is eliminated above $165,000. For married filing jointly, the phase-out is $236,000 to $246,000. For married filing separately (and the couple lived together during the year), the phase-out is $0 to $10,000. Source: IRS Rev Proc 2024-40.
Roth IRA vs Traditional IRA: which is better?
If your tax rate is higher in retirement than it is today, a Roth IRA generally comes out ahead because you pay tax now at the lower rate and withdrawals are tax-free. If your tax rate will be lower in retirement, a deductible Traditional IRA may be better because you defer tax until withdrawals. If you are ineligible for a Traditional IRA deduction, the Roth's tax-free growth generally makes it more attractive than a non-deductible Traditional IRA. The best choice depends on your individual tax situation.
Can I contribute to both a Roth IRA and a Traditional IRA in the same year?
Yes. You can contribute to both a Roth IRA and a Traditional IRA in the same tax year, but the combined total cannot exceed the annual limit ($7,000 in 2025, or $8,000 if age 50 or older). For example, you could contribute $3,500 to each. The Roth contribution is also subject to the MAGI phase-out; the Traditional IRA deductibility has its own phase-out if you are covered by a workplace plan.
What is a backdoor Roth IRA?
A backdoor Roth IRA is a strategy where a taxpayer above the Roth IRA income limit makes a non-deductible Traditional IRA contribution and then converts it to a Roth IRA. There is no income limit on Roth conversions, only on direct Roth contributions. The conversion is taxable to the extent of pre-tax amounts in all your Traditional IRAs under the pro-rata rule (Form 8606). This strategy is widely used but involves complexity; consult a tax adviser.
What are the rules for qualified Roth IRA withdrawals?
A Roth IRA distribution is qualified (fully tax-free and penalty-free) if: (1) the account has been open for at least five years (the five-year rule), AND (2) the distribution is made after age 59-and-a-half, on account of disability, to a beneficiary after death, or for a first-time home purchase (up to $10,000 lifetime limit). Non-qualified distributions of earnings may be subject to income tax and a 10% early-withdrawal penalty. Source: IRS Publication 590-B.
Official sources
- 2025 contribution limits and phase-out amounts: IRS Rev Proc 2024-40.
- Roth IRA contribution rules: IRS Publication 590-A, Contributions to Individual Retirement Arrangements.
- Roth IRA distribution rules: IRS Publication 590-B, Distributions from Individual Retirement Arrangements.
Reviewed by the CalculatorHub team, edited by James Graham, 13 June 2026. See our methodology. General information only, not financial or tax advice.