Roth IRA Calculator
Project your Roth IRA balance at retirement using 2026 IRS limits and real after-tax math. Includes income phase-out checking, side-by-side comparison vs Traditional IRA, and the backdoor Roth callout for high earners.
Last updated: April 2026 · Source: IRS Notice 2025-67
2026 max: $7,500
7% is standard real return assumption
Phase-out: $153K-$168K
2026 Roth IRA limits and rules
The IRS announced the 2026 IRA contribution limits in Notice 2025-67 on November 13, 2025. The Roth IRA contribution limit increased to $7,500(up from $7,000 in 2025). Workers age 50 and older can add a $1,100 catch-up contribution (up from $1,000), bringing their total to $8,600. The limit applies to your combined IRA contributions across both Roth and Traditional accounts — you cannot contribute the full limit to each.
The 2026 income phase-out ranges for direct Roth contributions:
| Filing status | Full contribution | Phase-out range | No contribution |
|---|---|---|---|
| Single / HoH | Below $153,000 | $153,000-$168,000 | $168,000+ |
| Married filing jointly | Below $242,000 | $242,000-$252,000 | $252,000+ |
| Married filing separately | N/A | $0-$10,000 | $10,000+ |
High earners over the limit can still access Roth accounts through the backdoor Rothstrategy: contribute to a non-deductible Traditional IRA (no income limits exist for non-deductible contributions), then convert that Traditional IRA to a Roth IRA. Watch out for the pro-rata rule if you have existing pre-tax Traditional IRA balances.
The Roth IRA's killer features
Why Roth wins
- Tax-free growth and withdrawals — never pay tax on the gains
- No required minimum distributions — let it grow forever if you want
- Contributions can be withdrawn anytime — penalty-free, tax-free, for any reason
- Tax diversification — protects against future tax rate increases
- Estate planning advantage — passes to heirs tax-free
- No impact on Social Security taxation — Roth withdrawals do not count toward provisional income
Roth tradeoffs
- No tax deduction now — you give up a current-year tax break
- Income limits — high earners blocked from direct contributions
- 5-year rule on earnings — must wait to withdraw growth tax-free
- Lower contribution limit than 401(k) — only $7,500/year vs $24,500
- Bad fit if you expect lower retirement income — paying tax now at a higher rate is wasteful
Three real Roth IRA scenarios
1. The 25-year-old maxing out from day one
Sarah starts contributing $7,500/year to a Roth IRA at age 25. By the time she\'s 65, 42 years of compound growth at 7% real return turns her $315,000 in contributions into roughly $1.65 million — completely tax-free. Compare that to a Traditional IRA: at a 22% retirement bracket, she\'d net only about $1.29 million after taxes. Roth wins by $360,000 because she paid taxes on contributions at her current 22% bracket (when income was relatively low) instead of paying on the much larger withdrawal amount.
2. The high earner doing the backdoor Roth
Marcus earns $220,000 as a single filer — well above the $168,000 Roth ceiling. He can\'t contribute directly. Instead he uses the backdoor: contributes $7,500 to a Traditional IRA (non-deductible since he\'s also covered by a 401(k)), then immediately converts to a Roth. The conversion is tax-free because he had no other Traditional IRA money. He repeats this every year. Over 25 years to retirement at age 65, his backdoor Roth grows to about $475,000 — entirely tax-free in retirement, alongside his 401(k).
3. The peak earner who picks Traditional
Lisa is 45, earns $185,000 (married filing jointly under the limit), and is in the 24% federal tax bracket. She expects to retire on about $80,000/year — putting her in the 12% bracket. Even though she could contribute to a Roth, the math says Traditional wins for her: paying 24% now to avoid 12% later loses 12 cents on every dollar. She contributes to a Traditional IRA, takes the deduction, and gets the immediate tax benefit at her higher current bracket.
Common Roth IRA mistakes
1. Contributing when you exceed the income limit
Excess Roth contributions are subject to a 6% annual penalty until removed. Always check your MAGI before contributing — or use the backdoor Roth strategy if you exceed the limit.
2. Triggering the pro-rata rule on backdoor Roth
If you have existing pre-tax Traditional IRA balances, the IRS treats your backdoor conversion as partially taxable. Roll your existing Traditional IRA into a 401(k) first if possible.
3. Withdrawing earnings before age 59½
You can withdraw contributions any time, but earnings are subject to 10% penalty + income tax if withdrawn before 59½ (with limited exceptions). Track your contribution basis carefully.
4. Picking Roth when Traditional makes more sense
If you\'re in a high current tax bracket and expect a lower retirement bracket, the Traditional deduction beats the Roth tax-free growth. Run the math both ways before defaulting to Roth.
5. Not investing the money in your Roth IRA
A surprisingly common mistake: people contribute the cash but forget to actually invest it. Always confirm your contributions are allocated to funds (target-date, index, etc.) — cash sitting in a brokerage Roth earns nothing.
Frequently asked questions
What is the Roth IRA contribution limit for 2026?
The IRS announced the 2026 Roth IRA contribution limit is $7,500, up from $7,000 in 2025. Workers age 50 and older can make an additional $1,100 catch-up contribution (up from $1,000 in 2025), bringing the total to $8,600. The limit applies to your total IRA contributions across both Roth and Traditional accounts — you cannot contribute $7,500 to each.
What are the 2026 Roth IRA income limits?
For 2026, single filers and heads of household can make full Roth contributions if their modified adjusted gross income (MAGI) is below $153,000. The contribution amount phases out gradually between $153,000 and $168,000, and you cannot contribute at all if your MAGI is $168,000 or above. For married couples filing jointly, the phase-out range is $242,000 to $252,000. Married filing separately has a draconian $0-$10,000 phase-out range if you lived with your spouse during the year.
What is the difference between a Roth IRA and a Traditional IRA?
Traditional IRA contributions are tax-deductible now (if you qualify based on income and workplace plan coverage), grow tax-deferred, and are taxed as ordinary income when withdrawn in retirement. Roth IRA contributions are made with after-tax dollars (no deduction now), but the growth and qualified withdrawals in retirement are completely tax-free. The choice depends on whether you expect to be in a higher or lower tax bracket in retirement than today.
Should I choose Roth or Traditional?
Rule of thumb: Roth wins if you expect to be in a HIGHER tax bracket in retirement than you are today. Traditional wins if you expect to be in a LOWER tax bracket. Roth tends to be better for younger workers (lower current income, longer growth runway), high earners who can afford to forgo the deduction, and anyone who wants tax-free flexibility in retirement. Traditional tends to be better for peak earners in high brackets who will likely have lower retirement income. Many savers split contributions between both for tax diversification.
What is a backdoor Roth IRA?
A backdoor Roth is a legal strategy for high earners who exceed the Roth income limits. The process: contribute to a non-deductible Traditional IRA (no income limits exist for non-deductible contributions), then convert that Traditional IRA to a Roth IRA. The conversion is taxable on any pre-tax balance you convert, but if you start with $0 in Traditional IRAs and only contribute non-deductible money, the tax impact is minimal. Be aware of the pro-rata rule: if you have existing pre-tax Traditional IRA balances, the conversion is partially taxable in proportion.
What is the pro-rata rule for backdoor Roth conversions?
The IRS treats all your Traditional IRA balances as a single account for tax purposes. When you convert any portion to Roth, the taxable percentage equals (pre-tax balance ÷ total IRA balance). Example: you have $94,000 in pre-tax Traditional IRA money and contribute $6,000 non-deductible. Of the $6,000 conversion, 94% ($5,640) is taxable. The fix: roll your existing pre-tax IRA into your current employer's 401(k) before doing the backdoor — 401(k)s are not counted in the pro-rata calculation.
Can I withdraw Roth IRA contributions early without penalty?
Yes — and this is one of the Roth's biggest advantages. You can withdraw your direct contributions (not earnings, not converted amounts) at any time, for any reason, with no taxes and no penalties. The IRS calls this the "ordering rules" — withdrawals come from contributions first, conversions second (subject to 5-year rule), and earnings last. This makes a Roth IRA essentially serve as a backup emergency fund for the contribution amounts, while still functioning as a retirement account.
What is the 5-year rule for Roth IRA?
There are actually two 5-year rules. The first applies to earnings: to withdraw earnings tax-free in retirement, your Roth IRA must have been open for at least 5 tax years AND you must be 59½ or older (or qualify for an exception). The second applies to conversions: each Roth conversion has its own separate 5-year clock for early withdrawal of the converted amount. Both rules start January 1 of the year you made the contribution or conversion.
Are Roth IRA distributions tax-free?
Qualified distributions are 100% tax-free. To be qualified, you must (1) be at least 59½ years old, (2) have had your first Roth IRA open for at least 5 tax years, AND (3) the withdrawal must be a qualified reason (retirement, first home purchase up to $10,000, disability, death). Non-qualified withdrawals of earnings are subject to income tax plus 10% penalty. Non-qualified withdrawals of contributions (not earnings) are always tax-free and penalty-free at any age.
Does a Roth IRA have required minimum distributions (RMDs)?
No. This is one of the Roth IRA's most powerful features. Traditional IRAs and 401(k)s require you to start taking minimum distributions at age 73 under SECURE 2.0 (rising to 75 in 2033), whether you need the money or not. Roth IRAs have no RMDs during the original owner's lifetime, which means you can let the money continue to grow tax-free indefinitely or pass it to heirs. Inherited Roth IRAs do have a 10-year payout rule for non-spouse beneficiaries.
How much will my Roth IRA be worth at retirement?
Contributing the full $7,500/year (or $8,600 with catch-up at age 50+) for 35 years at a 7% real return grows to about $1.04 million in today's dollars — completely tax-free. Starting later cuts that number dramatically: 25 years instead of 35 produces only about $475,000. The compound math heavily rewards starting young. The calculator above projects your specific scenario.
Can I contribute to both a 401(k) and a Roth IRA?
Yes, in most cases. The contribution limits are completely separate — you can max out both. In 2026 that means up to $24,500 in your 401(k) plus $7,500 in your Roth IRA, totaling $32,000 per year ($40,600 if you are age 50+ with catch-up contributions). The only restriction is the Roth IRA income phase-out. Your 401(k) participation does not affect your Roth IRA eligibility (though it does affect Traditional IRA deduction eligibility).
Data sources: IRS Notice 2025-67 (November 13, 2025) for 2026 contribution limits; IRS Publication 590-A and 590-B for IRA distribution rules; SECURE 2.0 Act for RMD age changes; Treasury and IRS final regulations on Roth catch-up requirements (September 16, 2025).
Last updated: April 2026. IRA contribution limits are updated annually each November when the IRS releases COLA adjustments.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial or tax advice. Consult a qualified financial advisor or tax professional before making contribution or conversion decisions.