Roth IRA Calculator 2026 — Complete Guide
A Roth IRA is funded with after-tax dollars — you pay tax now, but everything inside grows completely tax-free and qualified withdrawals in retirement are 100% tax-free. No required minimum distributions. One of the most powerful retirement vehicles available.
⚡ Roth IRA Quick Reference — 2026
Contribution limit (under 50)$7,000
Catch-up (age 50+)$8,000
Phase-out: Single$150K–$165K
Phase-out: Married (MFJ)$236K–$246K
Phase-out: MFS$0–$10K
Penalty-free withdrawal age59½
Contributions can be withdrawnAny time, no penalty
Required Minimum DistributionsNone
Tax on growth in retirement0%
Why Roth Wins for Most People Under 50
If you expect to be in the same or higher tax bracket in retirement, Roth wins. A $7,000 contribution at 7% for 30 years becomes ~$53,000 completely tax-free. The Traditional IRA equivalent requires paying income tax on every withdrawal — potentially wiping out years of growth.
Backdoor Roth IRA — For High Earners
If your MAGI exceeds the phase-out range, use the backdoor Roth: contribute to a non-deductible Traditional IRA (no income limit), then convert it to Roth immediately. No tax owed if you have no other pre-tax IRA balances. Beware the pro-rata rule.
Can I withdraw from my Roth IRA early?+
Contributions (your own money) can be withdrawn any time with no penalty or tax — you already paid tax. Growth can be withdrawn penalty-free at 59½ if the account is 5+ years old. Early withdrawal of growth: 10% penalty + income tax, with exceptions for first home, disability, higher education.
Roth IRA vs Traditional IRA — which is better?+
Traditional: pre-tax now, taxed in retirement. Roth: after-tax now, tax-free forever. If income is higher now than in retirement → Traditional. If income is lower now or you expect higher taxes later → Roth. For most people under 50 in low/middle brackets, Roth wins long-term due to tax-free compounding of growth.
What should I invest my Roth IRA in?+
Hold your highest-growth investments inside the Roth for maximum tax-free benefit. Low-cost S&P 500 or total-market index ETFs are ideal. The Roth is especially powerful for growth stocks, small-cap funds, and REITs since all future gains are permanently tax-free.
Frequently Asked Questions
What is the Roth IRA income limit for 2026?+
Single filers: phase-out $150,000–$165,000 MAGI. Married filing jointly: $236,000–$246,000. Married filing separately: $0–$10,000. Above top threshold you cannot contribute directly. Use backdoor Roth if over the limit.
Does Roth IRA have Required Minimum Distributions?+
No. This is one of Roth IRA's biggest advantages. Traditional IRAs force withdrawals (RMDs) at 73, creating taxable income. Roth IRA has no RMDs — the money can compound tax-free for life and be passed to heirs. Inherited Roth IRAs follow a 10-year rule for non-spouse beneficiaries.
Can I have both a Roth IRA and a 401k?+
Yes. The limits are separate. You can max a 401k ($23,500) and a Roth IRA ($7,000/$8,000) in the same year. Having both gives you tax diversification — pre-tax money in 401k, tax-free in Roth — letting you optimize withdrawals in retirement.