Roth IRA Calculator
Calculate Roth IRA growth and compare with taxable accounts
Roth IRA Calculator
Calculate the balances of Roth IRA savings and compare them with regular taxable accounts. This calculator helps you understand the tax advantages of Roth IRA investments for retirement planning.
đĻ Roth IRA Details
đ Comparison Results
Enter your information and click Calculate to see your personalized Roth IRA comparison.
According to the provided information, the Roth IRA account can accumulate $269,942 more than a regular taxable account by age 65.
đ Understanding Roth IRAs
What is a Roth IRA?
A Roth IRA is a type of Individual Retirement Account that provides tax-free growth and tax-free income in retirement. Contributions are made with after-tax dollars.
Tax Advantages
While contributions aren't tax-deductible, all earnings grow tax-free and withdrawals in retirement are completely tax-free, unlike traditional IRAs or 401(k)s.
Contribution Limits
For 2024, you can contribute up to $7,000 if you're under 50, or $8,000 if you're 50 or older. Income limits may apply for high earners.
Roth IRA Benefits
A Roth IRA is a type of Individual Retirement Arrangement (IRA) that provides tax-free growth and tax-free income in retirement. The major difference between Roth IRAs and traditional IRAs is that contributions to the former are not tax-deductible, and contributions (not earnings) may be withdrawn tax-free at any time without penalty.
Key Advantages
- Tax-Free Retirement Income: Distributions during retirement are not taxed
- No Required Minimum Distributions: Unlike traditional IRAs, no RMDs at age 73
- Flexible Contributions: Withdraw contributions anytime without penalty
- Estate Planning Benefits: Pass tax-free income to heirs
- Tax Diversification: Balance taxable and tax-free retirement income