Estimate tax-free Roth IRA growth with MAGI phase-out limits and a head-to-head comparison against a taxable brokerage account.
Embeds 2026 IRS limits: $7,500 base contribution, $8,600 at age 50+, with phase-out ranges of Single/HoH $153k to $168k, MFJ $242k to $252k, and MFS $0 to $10k.
Disclaimer: Roth IRA withdrawal rules apply: 5-year rule for earnings, age 59 1/2 for full tax-free withdrawal. Phase-out limits adjust annually for inflation.
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Calculator information
📋 How to use this calculator
- Enter current age, retirement age, and current Roth IRA balance in USD.
- Input annual contribution: the 2026 limit is $7,500, or $8,600 at age 50+.
- Set expected annual return (5-10%), inflation rate (2-3%), and contribution growth (or set to 0 if maxing out each year).
- Toggle 'Compare to Taxable Account' to see Roth advantage assuming 25% tax drag on dividends/capital gains in the alternative.
- View results in nominal and inflation-adjusted dollars; Roth withdrawals after age 59.5 and 5-year rule are 100% tax-free.
- Tip: If MAGI exceeds limits, use backdoor Roth conversion - contribute to non-deductible Traditional IRA, then convert to Roth.
🧮 Roth IRA Growth & Tax-Adjusted Comparison
FV_Roth = P(1+r)^n + PMT x [((1+r)^n - 1) / r]; FV_Taxable = same with r_effective = r x (1 - tax_drag)
- P: current Roth balance (after-tax dollars)
- PMT: annual contribution, limited to $7,500 or $8,600 at age 50+ in 2026
- r: gross annual return (decimal)
- tax_drag: ~0.15-0.25 on taxable account dividends/realized gains
- MAGI phase-out 2026: Single/HoH $153-168k, MFJ $242-252k, MFS $0-10k
- Qualified withdrawal: age >= 59.5 AND account >= 5 years old
Roth IRA contributions (not earnings) can be withdrawn anytime tax-free and penalty-free. No required minimum distributions (RMDs) during lifetime.
💡 Worked example: 30-Year-Old Maxing Roth IRA to Age 65
Given:- Current age 30, retire at 65 (35 years)
- Current Roth balance $15,000
- Annual contribution $7,500 (2026 maximum)
- Catch-up raises the limit to $8,600 at age 50
- Expected return 7% nominal
- Single filer, MAGI $90,000 (under phase-out)
Steps:- FV of current $15k: 15,000 x (1.07)^35 = 15,000 x 10.68 = $160,198
- FV of $7,500 annual contributions from age 30 to 49, then grown to age 65 = about $848,309
- FV of $8,600 annual contributions from age 50 to 64 = about $216,110
- Total nominal FV at 65 = about $1,224,567
- All withdrawals tax-free after age 59.5; compare to Traditional IRA where same balance would owe 22-32% federal tax on withdrawals
- A 4% first-year withdrawal is about $48,983
Result: Projected balance is about $1.22M at age 65 under these assumptions.
❓ Frequently asked questions
What is the 2026 Roth IRA contribution limit?
For 2026, the contribution limit is $7,500 for those under 50 and $8,600 at age 50+. MAGI phase-outs are $153,000-$168,000 Single/HoH, $242,000-$252,000 MFJ, and $0-$10,000 MFS.
What is a backdoor Roth IRA?
A backdoor Roth uses a non-deductible Traditional IRA contribution up to the applicable $7,500 or $8,600 limit, followed by a Roth conversion. The pro-rata rule can make part of the conversion taxable.
When can I withdraw from a Roth IRA penalty-free?
Contributions (not earnings) can be withdrawn anytime, tax-free and penalty-free. Earnings are tax-free only if: (1) account is at least 5 years old, AND (2) you are at least 59.5, OR you qualify for an exception (first-time home purchase up to $10,000, disability, qualified higher education, etc.). Early withdrawal of earnings before meeting both criteria triggers 10% penalty plus income tax.
Roth IRA vs Roth 401(k) - which is better?
Roth 401(k) has a higher employee limit of $24,500 in 2026 and may include an employer match. Roth IRA has broader investment flexibility and different withdrawal rules.
Are Roth IRA withdrawals really tax-free forever?
Yes, qualified withdrawals (after age 59.5 and 5-year rule) of both contributions and earnings are 100% federal tax-free. No taxes on dividends, capital gains, or appreciation during accumulation either. State taxes follow federal treatment in most states. Roth IRAs also have no required minimum distributions (RMDs) during the owner's lifetime, unlike Traditional IRAs which require RMDs starting at age 73. This makes Roth excellent for estate planning.
📚 Sources & references
Last updated: July 12, 2026