Roth IRA Calculator - NerdWallet (2024)

The Roth IRA is a favorite among retirement investors. That’s because it offers tax-free growth and tax-free withdrawals after you're 59½ and have held the account for five years. Our calculator will help you estimate your future balance.

How this free Roth IRA calculator works

  • Your Roth IRA balance at retirement is based on the factors you plug in to the calculator — your total planned annual contribution, your current age, tax filing status, retirement age and the rate of return. There is no inflation assumption.

  • The Roth IRA calculator defaults to a 6% rate of return, which can be adjusted to reflect the expected annual return of your investments.

  • The estimated tax savings is a projection based on the difference between investing in a standard taxable account and investing in a Roth IRA. Investments in a standard taxable brokerage account are subject to capital gains taxes; saving for retirement in a Roth IRA has tax advantages — tax-free investment growth and tax-free qualified withdrawals.

» Ready to get started? See NerdWallet’s picks for the best Roth IRA accounts.

Roth IRA calculator fields

  • Annual contribution: The amount that you plan to contribute to your Roth IRA each year. The maximum amount you can contribute to your Roth IRA depends on your age, your filing status and modified adjusted gross income.

  • Annual income: For the purposes of this calculator, use your modified adjusted gross income (MAGI), which is your adjusted gross income with specific deductions added back in. It’s one of two factors used to determine your Roth IRA contribution limit (the other being filing status).

  • Current age: The age you are now. Those 50 or older are eligible to contribute an extra $1,000 as a catch-up contribution.

  • Estimated rate of return: The annual rate of return is the amount the investments in your Roth IRA lose or gain in a year. The Roth IRA calculator defaults to a 6% rate of return, which can be adjusted to reflect the expected annual return of your investments.

  • Retirement age: Your retirement age is the age you hope to retire. The full retirement age ranges from 65-67 depending on your year of birth.

  • Starting balance: The total current balance in your Roth IRA.

  • Tax filing status: This is the filing status that you report to the IRS on your tax forms. Filing status is one of two factors considered when determining your Roth IRA contribution limit.

Roth IRA income and contribution limits

The amount you can contribute to a Roth IRA depends on your annual income. The Roth IRA contribution limit for 2024 is $7,000 in 2024 ($8,000 if age 50 or older). At certain incomes, the contribution amount is lowered until it is eliminated completely.

While this restricts direct contributions to a Roth IRA, high earners can utilize other options to add to their Roth IRA, such as a backdoor Roth, or explore other retirement accounts.

2024 Roth IRA limits by filing status

Filing status

Roth IRA income limits 2024

Roth IRA contribution limits 2024

Single, head of household, or married filing separately (if you didn't live with spouse during year)

Less than $146,000.

$7,000 ($8,000 if 50 or older).

$146,000 or more, but less than $161,000.

Contribution is reduced.

$161,000 or more.

No contribution allowed.

Married filing jointly or surviving spouse

Less than $230,000.

$7,000 ($8,000 if 50 or older).

$230,000 or more, but less than $240,000.

Contribution is reduced.

$240,000 or more.

No contribution allowed.

Married filing separately (if you lived with spouse at any time during year)

Less than $10,000.

Contribution is reduced.

$10,000 or more.

No contribution allowed.

» Learn more about Roth IRA withdrawal rules.

Roth IRA Calculator - NerdWallet (2024)

FAQs

At what income level does Roth IRA not make sense? ›

For tax year 2024, single and head-of-household filers with MAGIs of $146,000 to $161,000 can contribute only limited amounts. The income phaseout range for married couples filing jointly is $230,000 to $240,000. Taxpayers with incomes above those top numbers cannot contribute anything to a Roth IRA.

How much does a Roth IRA grow in 10 years? ›

The Roth IRA annual contribution limit is $7,000 in 2024 ($8,000 if age 50 or older). If you open a Roth IRA and fund it with $7,000 each year for 10 years, and your investments earn 6% annually, you may end up with more than $92,000 by the end of the decade.

How to get $1 million in Roth IRA? ›

Becoming a Roth IRA millionaire is not only possible, it's actually quite easy! Just set up a free online account with a big broker, fund it annually with maximum contributions, and invest in low cost index funds. Boom – you'll reach millionaire status in your Roth IRA account over the course of a few decades.

At what age does a Roth IRA not make sense? ›

You're never too old to fund a Roth IRA. The earlier you start a Roth IRA, the longer you have to save and take advantage of compound interest. Even when you're close to retirement or already in retirement, opening this special retirement savings vehicle can still make sense under some circ*mstances.

What happens if I contribute to a Roth IRA but my income is too high? ›

The IRS puts annual income limits on a Roth IRA. When you exceed that limit, the IRS generally charges a 6% tax penalty for each year the excess contributions remain in your account. This is triggered at the time you file each year's taxes, giving you until that deadline to remove or recharacterize the misplaced funds.

At what age does a Roth conversion not make sense? ›

If your age is between 40 and 50, it is not obvious whether conversion makes sense. If your age is greater than 50, it likely doesn't make sense to convert because there is not enough time to allow the Roth IRA growth to exceed the tax cost today.

Is it smart to max out Roth IRA every year? ›

Therefore, maxing out your Roth IRA can benefit you, even with a lower income. Because contributions are made with after-tax dollars, qualified withdrawals in retirement are tax-free, and can thereby help you reduce your long-term tax burden.

Is there a 5 year rule for Roth IRA? ›

This rule for Roth IRA distributions stipulates that five years must pass after the tax year of your first Roth IRA contribution before you can withdraw the earnings from the account tax-free. Keep in mind that the five-year clock begins ticking on Jan. 1 of the year you made your first contribution to the account.

How long does it take to become a millionaire with a Roth IRA? ›

Rely on the math

Still, the math behind becoming a Roth IRA millionaire still holds. Assuming an annual January contribution to your Roth IRA of $6,500 and an 8% average long-term investment return, you can expect to become an IRA millionaire in just under 34 years.

How many people have $3000000 in savings in the USA? ›

There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more.

Can I retire at 62 with 1 million? ›

In fact, with careful planning and a solid investment strategy, you could possibly live off the returns from a $1 million nest egg. When figuring out how much you'll need for retirement, be sure to factor in cost of living and inflation, withdrawal taxes, health care expenses, and lifestyle preferences.

How many Roth IRA millionaires are there? ›

In fact, Fidelity noted that as of the end of 2023, a record number of people -- 391,562 -- had balances of a million or more in their IRAs.

What is the downside of a Roth IRA? ›

One disadvantage of the Roth IRA is that you can't contribute to one if you make too much money. The limits are based on your modified adjusted gross income (MAGI) and tax filing status.

Is 57 too late to start a Roth IRA? ›

Unlike the traditional IRA, where contributions aren't allowed after age 70½, you're never too old to open a Roth IRA.

What is a backdoor Roth IRA? ›

Backdoor Roth IRA: A backdoor Roth IRA is a strategy for high-income earners who exceed Roth IRA contribution income limits. It involves making non-deductible contributions to a traditional IRA and then converting those funds into a Roth IRA. This allows high allows high earners to take advantage of Roth IRA benefits.

At what income should you stop contributing to Roth IRA? ›

Note
Roth IRA Income and Contribution Limits for 2024
Single, head of household, or married filing separately (and you didn't live with your spouse at any time during the last year)
Less than $146,000$7,000 ($8,000 if age 50 or older)
$146,000 to $161,000Begin to phase out
$161,000 or moreIneligible for direct Roth IRA
8 more rows

At what salary can you not have a Roth IRA? ›

Roth IRA phase-out ranges
Filing status2023 income range2024 income range
Single$138,000–$153,000$146,000–$161,000
Married, filing jointly$218,000–$228,000$230,000–$240,000
Married, filing separately*$0–$10,000$0–$10,000

What income level should you not do a Roth 401k? ›

No income limitation to participate. Aggregate* employee elective contributions limited to $23,000 in 2024; $22,500 in 2023; $20,500 in 2022; $19,500 in 2021 (plus an additional $6,500 in 2022 and 2021 for employees age 50 or over; additional $7,500 in 2023 and 2024 for employees age 50 or over).

When not to do a Roth IRA? ›

If you earn more than the maximum amount, you cannot contribute to a Roth IRA. For 2024, you can't contribute to a Roth if you earn $161,000 or more per year—or $240,000 or more if you are married and file a joint return.

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