Roth IRA Calculator
Frequently Asked Questions
What is the Roth IRA contribution limit for 2025?
For 2025, the Roth IRA contribution limit is $7,000 per year for individuals under age 50. If you are 50 or older, you can contribute up to $8,000 per year using the catch-up contribution. These limits apply to your combined IRA contributions across all accounts, not per account.
When can I withdraw from a Roth IRA tax-free?
Qualified tax-free withdrawals from a Roth IRA require two conditions: you must be at least 59½ years old, and the account must have been open for at least five years. Contributions (not earnings) can be withdrawn at any time without tax or penalty, making Roth IRAs more flexible than Traditional IRAs.
Does income affect my ability to contribute to a Roth IRA?
Yes. For 2025, single filers with modified adjusted gross income (MAGI) above $150,000 begin to have reduced contribution limits, with full phase-out at $165,000. Married couples filing jointly phase out between $236,000 and $246,000. High earners can use a Backdoor Roth IRA conversion strategy to bypass these limits.
What annual return rate should I use in the Roth IRA calculator?
A commonly used benchmark is 7% per year, which reflects the historical average real return of a diversified stock portfolio like the S&P 500 after adjusting for inflation. Conservative investors often use 5–6%, while more aggressive projections use 8–10%. Always use a realistic rate that matches your actual investment strategy.
Can I have both a Roth IRA and a 401(k) at the same time?
Yes, absolutely. You can contribute to both a Roth IRA and a 401(k) in the same year, subject to their separate limits. In fact, many financial planners recommend using both accounts together — maxing your 401(k) for the employer match first, then contributing to a Roth IRA for tax-free growth and added flexibility in retirement.
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