Estimate your Roth IRA savings and compare with a regular taxable account.
This calculator assumes annual contributions at year-end and taxes are paid yearly on gains in the taxable account. Actual results may vary.
Initial Investment: The amount of money you invest at the start (the age you begin investing).
Annual Contribution: The amount you add to your account every year until retirement. This is the money you save or invest each year, in addition to your initial investment. For Roth IRAs, the IRS sets annual contribution limits, which may change over time and can depend on your income and tax filing status. Be sure to check the latest IRS rules to ensure your planned contributions are within the allowed limits.
Annual Return Rate: The expected average yearly growth rate of your investments, after fees, expressed as a percentage.
Current Age: Your age when you start investing.
Retirement Age: The age at which you plan to retire and stop making annual contributions.
Tax Rate on Gains: The percentage of investment gains paid as tax each year in a regular taxable account. Roth IRA gains are tax-free if qualified.
Qualified Distributions: Withdrawals from a Roth IRA are tax-free and penalty-free if you are at least age 59½ and your account has been open for at least 5 years.
Non-Qualified Distributions: If you withdraw earnings before age 59½ or before the account is 5 years old, you may owe income tax and a 10% early withdrawal penalty on the earnings portion.
Contributions vs. Earnings: You can always withdraw your original contributions (but not earnings) from a Roth IRA at any time, tax- and penalty-free.
Required Minimum Distributions (RMDs): Roth IRAs are not subject to RMDs during the account owner's lifetime.
For more details and the latest rules, consult the IRS Roth IRA page.