Roth IRA Calculator 2026

Calculate your tax-free Roth IRA growth and check eligibility based on income.

Roth IRA Calculator

Roth IRAs offer tax-free growth and tax-free withdrawals in retirement. Contributions are made with after-tax dollars.

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Why Choose a Roth IRA?

A Roth IRA is one of the most powerful retirement savings tools available. Unlike Traditional IRAs, you contribute after-tax dollars, but all future growth and withdrawals are completely tax-free.

Key Advantages

  • Tax-free growth forever - Your investments compound without any tax drag
  • Tax-free withdrawals in retirement - No taxes on qualified distributions after age 59½
  • No Required Minimum Distributions (RMDs) - Unlike Traditional IRAs, you never have to take money out
  • Withdraw contributions anytime - Access your contributions (not earnings) penalty-free at any age
  • Tax diversification - Balance taxable and tax-free income in retirement
  • Estate planning benefits - Pass tax-free wealth to heirs

2026 Roth IRA Income Limits (Phase-Out Ranges)

Your ability to contribute to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI). For complete details, see our Roth IRA Contribution Limits 2026 Guide.

Single Filers

MAGI Contribution Limit
Less than $150,000 Full $7,500 (or $8,500 if 50+)
$150,000 - $165,000 Reduced (phased out)
$165,000 or more $0 (not eligible)

Married Filing Jointly

MAGI Contribution Limit
Less than $236,000 Full $7,500 (or $8,500 if 50+)
$236,000 - $246,000 Reduced (phased out)
$246,000 or more $0 (not eligible)

Backdoor Roth IRA Strategy (For High Earners)

If your income exceeds the Roth IRA limits, you can still get money into a Roth IRA using the "backdoor" method. Also consider our Roth Conversion Calculator for Traditional to Roth conversions.

Step-by-Step Process:

  1. Contribute $7,500 to a Traditional IRA (non-deductible)
  2. Immediately convert the Traditional IRA to a Roth IRA
  3. Pay taxes on any earnings between contribution and conversion
  4. File Form 8606 with your tax return

⚠️ Pro-Rata Rule Warning

If you have existing Traditional IRA balances, the pro-rata rule applies. You can't just convert the non-deductible portion - conversions are proportional across all Traditional IRAs.

Example: $95,000 pre-tax Traditional IRA + $7,500 non-deductible contribution = only 7.3% of conversion is tax-free.

Roth IRA vs Traditional IRA Comparison

Feature Roth IRA Traditional IRA
2026 Contribution Limit $7,500 ($8,500 if 50+) $7,500 ($8,500 if 50+)
Income Limits Yes (see above) No (for contributions)
Tax Deduction No Maybe (depends on income/401k)
Tax on Contributions Pay now (after-tax) Deductible (pre-tax)
Tax on Withdrawals Tax-free (if qualified) Taxed as ordinary income
RMDs Required No Yes, starting at age 73/75
Early Withdrawal Contributions anytime, tax/penalty-free 10% penalty + taxes (with exceptions)
Best For Younger workers, those expecting higher future tax rates Older workers, those needing tax deduction now

The 5-Year Rule Explained

To withdraw earnings tax-free and penalty-free from a Roth IRA, you must satisfy BOTH requirements:

  1. Age 59½ or older
  2. 5 years since your first Roth IRA contribution (to any Roth IRA)

Important Notes:

  • The 5-year clock starts January 1 of the year you make your first contribution
  • You can always withdraw your contributions (not earnings) tax-free and penalty-free at any age
  • Each Roth conversion has its own 5-year clock for penalty-free withdrawals
  • First-time home purchase ($10,000 lifetime limit) is an exception to the 5-year rule

Roth IRA Withdrawal Rules

Qualified Distributions (Tax-Free & Penalty-Free)

After age 59½ and 5 years from first contribution, all withdrawals are completely tax-free.

Early Withdrawals

What You Withdraw Tax Penalty
Contributions (anytime) No tax No penalty
Earnings (before 59½ and 5 years) Taxed 10% penalty
Earnings (after 59½ but before 5 years) Taxed No penalty
Earnings (qualified distribution) No tax No penalty

Penalty Exceptions

The 10% early withdrawal penalty on earnings does NOT apply if you use the money for:

  • First-time home purchase (up to $10,000 lifetime)
  • Qualified education expenses
  • Disability
  • Unreimbursed medical expenses (>7.5% of AGI)
  • Health insurance premiums (if unemployed)

Frequently Asked Questions

What is the Roth IRA contribution limit for 2026?

$7,500 if you're under 50, or $8,500 if you're 50 or older. However, you must have earned income at least equal to your contribution, and income limits apply.

Can I contribute to both a Roth IRA and 401k?

Yes! The limits are separate. You can contribute $7,500 to a Roth IRA AND $24,500 to a 401k in 2026 (assuming you meet income requirements for the Roth IRA).

What if my income is too high for a Roth IRA?

Use the backdoor Roth IRA strategy: contribute to a Traditional IRA (non-deductible) and immediately convert to a Roth IRA. There are no income limits on Roth conversions.

Can I withdraw my Roth IRA contributions before retirement?

Yes! You can withdraw your contributions (not earnings) at any time, for any reason, tax-free and penalty-free. This makes Roth IRAs more flexible than Traditional IRAs.

When is the deadline to contribute for 2026?

You can contribute for 2026 anytime from January 1, 2026 through April 15, 2027 (tax filing deadline). This gives you extra time to maximize your contribution.

What is MAGI and how do I calculate it?

MAGI (Modified Adjusted Gross Income) is your AGI with certain deductions added back. For most people, MAGI ≈ AGI (line 11 on Form 1040). Add back: Traditional IRA deductions, student loan interest, foreign income exclusions.

Can I contribute to a Roth IRA for my non-working spouse?

Yes! You can make a spousal Roth IRA contribution for a non-working spouse, as long as you have enough earned income to cover both contributions and you file jointly.

Should I choose Roth or Traditional IRA?

Choose Roth if: you're young, expect higher tax rates in retirement, want tax-free withdrawals, or don't need the tax deduction now. Choose Traditional if: you need the tax deduction now, expect lower tax rates in retirement, or are close to retirement.