Starting balance

The current balance of your Roth IRA.

Annual contribution

The amount you will contribute to your Roth IRA each year. This calculator assumes that you make your contribution at the beginning of each year. For 2023 the maximum annual IRA contribution of $6,500 a $500 increase from 2022. It is important to note that this is the maximum total contributed to all of your IRA accounts. The contribution limit increases with inflation in $500 increments. An annual change to the contribution limit only occurs if the cumulative effect of inflation since the last adjustment is $500 or more.

If you are 50 or older you can make an additional 'catch-up' contribution of $1,000. The 'catch-up' contribution amount of $1,000 remains unchanged for 2023, but will be adjusted for inflation in $100 increments starting in 2024. In order to qualify for the 'catch-up' contribution, you must turn 50 by the end of the year in which you are making the contribution.

Roth IRA contributions are limited for higher incomes. If your income falls in a 'phase-out' range you are allowed only a prorated Roth IRA contribution. If your income exceeds the phase-out range, you do not qualify for any Roth IRA contribution. The table 'Roth IRA 2023 Contribution Phaseout' summarizes the income 'phase-out' ranges for Roth IRAs.

For the purposes of this calculator, the tool assumes that your income does not limit your ability to contribute to a Roth IRA.

Starting in 2010 high income individuals have the option to make non-deductible traditional IRA contributions and then immediately convert them to a Roth IRA. This can effectively eliminate the income phase-out for Roth IRA contributions.

Current age

Your current age.

Age at retirement

Age at which you plan to retire. This calculator assumes that the year you retire, you do not make any contributions to your IRA. For example, if you retire at age 65, your last contribution occurs when you are actually age 64.

Expected rate of return

The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2022, had an annual compounded rate of return of 12.6%, including reinvestment of dividends. From January 1, 1970 to December 31^st 2022, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.7% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.

Marginal tax rate

The marginal tax rate you expect to pay on your taxable investments. Use the ‘Filing Status and Federal Income Tax Rates on Taxable Income’ table to assist you in estimating your federal tax rate.

Total contributions

The total amount contributed to this IRA.

Maximize contributions

Check this box to contribute the maximum allowed to your account each year. This includes the additional catch-up contribution available when you are age 50 or over.

Total taxable savings

The total amount you would have accumulated by retirement in a taxable savings account.

Roth total at retirement

Total value in your Roth IRA at your retirement. To take any distributions that include earnings that are tax free, the Roth IRA must be opened for 5 tax years. Eligible tax-free distributions include those taken for death or disability, after age 59-1/2, or for a first-time home purchase.