cost-calculation
Roth IRA Calculator (2026) — Tax-Free Growth Projection & IRS Limits
A Roth IRA is funded with after-tax dollars, so qualified withdrawals in retirement — including all the growth — are tax-free, unlike a traditional IRA or 401(k). This calculator projects your Roth balance from your age, current balance, and annual contribution, applying the 2026 IRS contribution limit and catch-up automatically as you age.
Educational estimate based on the inputs you entered — not financial, legal, or tax advice. Verify against your specific situation before acting on this output.
How it works
Methodology
Inputs
- Current age / Retirement age
- Sets the projection horizon in years.
- Current Roth IRA balance
- What's in the account today.
- Annual contribution
- Your intended yearly contribution. Capped each year at the IRS limit for your age that year.
- Expected annual return
- Assumed average annual investment return within the account.
Formula
Simulated year-by-year, because the IRS contribution cap changes at age 50: cap(age) = $7,500 + $1,100 (age 50+) [2026 limits] annualContribution = min(desired contribution, cap) Each year: balance = balance × (1 + r/12) + monthlyContribution, applied 12×
Assumptions
- 2026 IRS limits are held flat for future years — no COLA is modeled.
- Full contribution eligibility is assumed — MAGI phase-out is not applied numerically; verify your allowed amount if your income is near the 2026 phase-out thresholds.
- Tax-free treatment assumes a qualified distribution (5-year rule + age 59½, or another IRS exception).
Worked examples
Age 30, maxing out the 2026 limit
- Current age
- 30
- Retirement age
- 65
- Current balance
- $10,000
- Annual contribution
- $7,500
- Return
- 7%
Projected balance ≈ $1.24M at 65. Total contributions ≈ $262,500 (35 years × $7,500). Tax-free growth ≈ $968,000 — nearly 4x the money actually put in.
Starting at 45 instead of 30
- Current age
- 45
- Retirement age
- 65
- Current balance
- $0
- Annual contribution
- $8,600
- Return
- 7%
Even with a higher catch-up-eligible contribution, 20 years produces a meaningfully smaller balance than 35 years at a lower amount — illustrating why time in the market outweighs contribution size.
Frequently asked
Questions readers ask
What is the 2026 Roth IRA contribution limit? +
For 2026, the IRS contribution limit for traditional and Roth IRAs combined is $7,500. Savers age 50+ can add a $1,100 catch-up contribution, for $8,600 total. This is a combined limit across all your IRAs — you can't contribute $7,500 to a Roth AND $7,500 to a traditional IRA in the same year. Source: IRS Newsroom, 'IRA limit increases to $7,500... for 2026.'
Who can contribute to a Roth IRA? +
Eligibility phases out based on Modified Adjusted Gross Income (MAGI). For 2026, the phase-out range is $153,000–$168,000 for single filers and heads of household, and $242,000–$252,000 for married filing jointly — full contribution is allowed below the range, a reduced amount within it, and $0 above it. Married filing separately has a near-$0 range ($0–$10,000). Check your MAGI against the current-year thresholds before contributing.
What makes Roth withdrawals tax-free? +
A 'qualified distribution' — the account has been open 5+ years AND you're 59½ or older (or meet another IRS exception, like first-time home purchase up to $10,000, disability, or death) — owes no federal income tax on either contributions or growth. Withdrawing contributions (not earnings) before that point is generally tax- and penalty-free, since you already paid tax on them; withdrawing earnings early can trigger tax and a 10% penalty.
Roth IRA vs traditional IRA vs Roth 401(k) — what's the real difference? +
A Roth IRA and traditional IRA share the same $7,500 (2026) contribution limit but differ in tax timing (pay tax now vs later) and the traditional IRA has no income-based eligibility phase-out (though deductibility can phase out if you're covered by a workplace plan). A Roth 401(k) uses the much higher 401(k) limit ($24,500 in 2026) with Roth's tax-free-growth treatment and no income limit — often the better vehicle for high earners who want Roth treatment beyond the IRA cap.
Can I contribute the full amount every year and still hit my projected number? +
Only if your contribution stays at or under the IRS limit for your age each year — this calculator caps it automatically. The bigger lever, by far, is time: starting a decade earlier at the same contribution level roughly doubles the compounding runway. Run different starting ages through the calculator to see the effect directly.
This tool is for educational purposes only and is not financial, legal, or tax advice. Final terms and eligibility depend on lender underwriting; consult a tax professional before acting on tax-tool output. ClearValue Lending is a funding platform.