Money » Calculators » Roth IRA Calculator
Advertiser Disclosure

This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.

This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.

Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.

Roth IRA Calculator

Creating a Roth IRA can make a big difference in your retirement savings. The Roth IRA can provide truly tax-free growth - use it to calculate your balance.

I Don't Need Background, Take Me to the Calculator!

How Roth IRA Works?

A Roth IRA is a great way for you to earn a whole lot of money and to do it quickly and easily. In fact, it’s one of the best ways for you to invest and earn some money for retirement because all of your money is growing tax-free.

When you retire that could mean tens of thousands of extra dollars that you wouldn’t have had otherwise.

These accounts are similar to a traditional IRA in that they hold onto investments and they allow you to invest in different types of accounts. You’ll be investing in things like mutual funds, stocks, ETF’s, bank savings products or bonds.

You will also have the option to invest in any way that you want, so you can contribute all at once the amount that you want to for the year or you can make deposits throughout the year. You just have to make sure that you’re investing only $6,000 or only the amount of your taxable compensation (whichever of the two is the smaller amount).

If you’re planning on using the money from your Roth IRA for retirement it’s a long-term investment and you’ll want to look at things like stocks and bonds. These are great for long-term investing and they could be great through a brokerage or robo-advisors.

If you’re one of those people who makes more money than the threshold allows you may not be able to invest as much or even at all. The amount you can put away decreases as you make more money than the threshold and at some point you won’t be able to get one at all.

The Benefits of a Roth IRA

  • Grow Tax-Free – This is probably the biggest and best benefit of a Roth IRA. You don’t have to pay taxes on the money that you take out of your Roth IRA because you’ve already paid money when you put it in. And you can take it out whenever you want.
  • It Works in Conjunction With a 401k – If you already have a 401k you can still get a Roth IRA and that Roth IRA is not impacted by how much you put into the 401k. you can still max out at $6,000 if you’re under 50 and $7,000 if you’re over 50.
  • No Minimum to Distributions – When it comes to distributions on your money you can take them whenever you want and you don’t have to worry about how much to take either. You can leave that money right there for as long (or as little) as you like.
  • Inherited IRA – If you don’t use all the money before you die you can have a beneficiary set up who can take over the Roth IRA and they’ll also be able to take that money out without paying taxes.
  • No Maximum Age – If you want to keep investing money even after you hit retirement age you can do it with a Roth IRA. After you hit 70 ½ you can no longer put money into a traditional IRA.