Sponsored
Ad slot is loading...

Roth IRA Contribution Calculator

Calculate your Roth IRA contribution limits and eligibility. Understand income phase-out rules, catch-up contributions, and combined Traditional/Roth IRA limits.

Personal Information

Catch-up contribution ($1,000 extra) available at age 50+.
Modified Adjusted Gross Income. Includes wages, dividends, interest, etc.

Contribution Details

Amount already contributed this year.
Traditional + Roth share the same annual limit.

Eligibility Status

Full contribution allowed (below phase-out)
Phase-Out Start:$146,000
Phase-Out End:$161,000

Contribution Limits (2024)

Base Limit:$7,000
Catch-Up (50+):$0
Your Max:$7,000
Allowed:$7,000

Remaining Contribution Room

$7,000
Current Contributions:$0.00
Traditional IRA:$0.00
Combined IRA Limit:$7,000
Combined Room:$7,000

Projected Growth (7% Annual Return)

10 Years:$13770
20 Years:$27088
30 Years:$53286
Roth IRA grows tax-free. All withdrawals in retirement are tax-free (after age 59½ and 5-year rule).

Roth IRA Tax Benefit Analysis

Tax Cost Now (~22%):$1540.00
Future Tax Savings:$11722.92
Pay taxes now on contributions, but withdrawals are 100% tax-free in retirement. Best if tax rate will be higher later.

Roth IRA Rules

  • Income Limits: Phase-out range for 2024: $146K-$161K (single), $230K-$240K (married). 2025: $150K-$165K (single), $236K-$246K (married).
  • Contribution Limit: $7,000 base + $1,000 catch-up (age 50+) for 2024-2025.
  • Combined Limit: Traditional + Roth IRA contributions share same annual limit.
  • No Age Limit: Can contribute at any age as long as you have earned income.
  • Withdrawal Rules: Tax-free after age 59½ AND account open 5+ years. Contributions can be withdrawn anytime tax-free.
  • Phase-Out Calculation: Contribution reduces linearly through phase-out range. IRS requires rounding down to nearest $10.
  • Excess Penalty: 6% excise tax per year on excess contributions. Correct by withdrawing before tax deadline.

Roth IRA vs Traditional IRA

  • Roth IRA: No income deduction. Tax-free growth. Tax-free withdrawals. No RMDs. Best if expect higher taxes in retirement.
  • Traditional IRA: May deduct contributions (income limits apply). Tax-deferred growth. Taxed withdrawals. RMDs at 73. Best if expect lower taxes in retirement.
  • Backdoor Roth: If income too high for direct Roth, contribute to Traditional (non-deductible) then convert to Roth. Watch for pro-rata rule if you have other Traditional IRAs.
  • Earned Income Required: Both require earned income (wages, self-employment). Cannot contribute more than earned income.
Sponsored
Ad slot is loading...