Roth IRA Calculator

Compare Roth IRA savings with regular taxable accounts

This calculator estimates the balances of Roth IRA savings and compares them with regular taxable account. It is mainly intended for use by U.S. residents. For calculations or more information concerning other types of IRAs, please visit our .

Modify the values and click the Calculate button to use

Current balance:

Annual contribution:

Maximize contributions?:

Yes

Expected rate of return:

Current age:

Retirement age:

Marginal tax rate:

Understanding Roth IRA vs Taxable Accounts

A Roth IRA is a retirement savings account that offers tax-free growth and withdrawals. Understanding the difference between Roth IRAs and taxable accounts can help you make informed investment decisions.

Key Differences:

• Roth IRA: Contributions are made with after-tax dollars, but all growth and withdrawals are tax-free
• Taxable Account: Contributions are made with after-tax dollars, and gains are taxed annually
• Contribution Limits: Roth IRAs have annual contribution limits ($7,000 for 2024)
• Withdrawal Rules: Roth IRAs have age and holding period requirements
• Required Minimum Distributions: Roth IRAs don't require RMDs during the owner's lifetime

Tax Advantages: The main benefit of a Roth IRA is that all investment gains grow tax-free, potentially saving significant amounts in taxes over time.

Strategy Tips: Consider your current tax rate vs. expected retirement tax rate when choosing between Roth and traditional IRAs.