Roth IRA Calculator

In 2026, you can contribute up to $7,000 to a Roth IRA — or $8,000 if you're age 50 or older (the $1,000 catch-up contribution). These limits apply to the combined total across all your IRAs (Roth and traditional). Contribution limits typically rise slowly each year. The limit phases out at higher incomes — see the income eligibility question below.

In 2026, single filers can contribute the full amount if modified adjusted gross income (MAGI) is under $150,000, partial amounts up to $165,000, and nothing above. Married filing jointly: full contribution under $236,000, phased out to $246,000. If you're above the income limit, look into a Backdoor Roth IRA — a legal workaround that involves contributing to a traditional IRA and converting to Roth.

Roth is generally better if you'll be in a higher or same tax bracket in retirement than now. Traditional is better if you'll be in a lower bracket later. Roth has no required minimum distributions (RMDs) in your lifetime — you can let it grow forever. Traditional forces you to start withdrawing at 73-75 (depending on birth year). For young workers in mid tax brackets, Roth almost always wins because of the long compounding runway.

Yes — you can withdraw your contributions (not earnings) at any age, at any time, with no tax or penalty. This is one of the biggest under-appreciated features. Earnings withdrawn before 59½ and before the account is 5 years old face taxes plus a 10% penalty. Treat the contributions as accessible if needed, but ideally don't touch them — you lose the compounding.

For Roth earnings to be withdrawn tax-free after age 59½, the account must have been open for at least 5 tax years. The clock starts on January 1 of the first year you contribute. There's also a separate 5-year rule for each Roth conversion. As long as you opened your first Roth IRA more than 5 years ago and you're over 59½, all withdrawals are tax-free.

Yes, you can — they're separate accounts with separate limits. The 401(k) limit is $23,500 (2026) and the Roth IRA limit is $7,000. Total potential combined: $30,500 between the two, plus catch-up contributions if you're 50+. Maxing both gives extraordinary tax diversification for retirement. Plus you can have a Roth 401(k) at work AND a Roth IRA on the side — all tax-free growth.

A Backdoor Roth is a legal strategy for high earners (above the income limits) to still contribute to a Roth IRA. You contribute to a traditional IRA (which has no income limit for contributions, just for deductibility), then convert it to a Roth IRA. You pay tax on any pre-tax dollars converted. It's perfectly legal, but the pro-rata rule can complicate things if you have other pre-tax IRA money. Consult a tax professional.

Since all growth is tax-free, hold investments with the highest expected returns — typically stock index funds. Specifically, low-cost total stock market or S&P 500 index funds (expense ratios under 0.1%) are ideal. Some advisors suggest holding REITs or high-dividend funds in Roth specifically because dividends and distributions grow tax-free. Avoid holding bonds in Roth if possible — you'd be wasting tax-free space on low-return assets.

No — qualified withdrawals are completely tax-free. To qualify, you must be at least 59½ AND the account must have been open for 5 tax years. There's no tax on either your contributions or your earnings. This is the whole point of a Roth — you pay taxes now (on income before contributing) in exchange for never paying taxes again on this money, including all the decades of compounding growth.

Excess contributions are subject to a 6% penalty per year for as long as they remain in the account. To fix it, withdraw the excess (plus any earnings on it) before the tax filing deadline — typically April 15. If you don't catch it in time, you can recharacterize, withdraw with the penalty, or apply it as a future-year contribution. Most brokerages will flag the issue, but track it yourself if you contribute throughout the year.