Roth IRA Calculator

For 2026 the limit is $7,500, rising to $8,600 from age 50 with the $1,100 catch-up contribution. That catch-up figure is notable — 2026 is the first year it has been inflation-indexed under SECURE 2.0, having sat at a flat $1,000 for years. The limit is a combined total across all your IRAs, Roth and traditional together, and you need at least that much earned income for the year to contribute the full amount. Contributions for 2026 can be made until the tax filing deadline in April 2027.

Eligibility runs on modified adjusted gross income. Single and head-of-household filers contribute the full amount below $153,000, a reduced amount between $153,000 and $168,000, and nothing directly above that. Married filing jointly: full below $242,000, phased out to $252,000. Married filing separately is the harsh case — the range is $0 to $10,000 and has never been indexed. Above the range, a backdoor Roth remains available, though the pro-rata rule makes it complicated if you hold pre-tax IRA balances.

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 Earnings withdrawn before 59½ and before the account is 5 years old face taxes plus a 10% penalty.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For Roth earnings to be withdrawn tax-free after age 59½, the account must have been open for at least 5 tax years.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) elective deferral limit is $24,500 for 2026 and the Roth IRA limit is $7,500. That is $32,000 combined before any catch-up contributions, which add $8,000 to the 401(k) at age 50 and $1,100 to the IRA. 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.