Why the Roth structure matters
You contribute after-tax money to a Roth IRA, and in return qualified withdrawals in retirement are tax-free — including all the growth. That makes the final balance unusually clean: there is generally no future tax bill waiting to shrink it, unlike a traditional pre-tax account.
This tool projects accumulation under a constant return and caps your annual contribution at the IRS limit — starting from the verified 2026 figures ($7,500, plus a $1,100 catch-up at age 50+) and projecting them forward by the COLA rate you set, with IRS-style rounding. It does not model the income (MAGI) phase-out that reduces or blocks Roth contributions for high earners, the five-year rule, or future changes to tax law.
Frequently asked questions
- How much can I contribute to a Roth IRA?
- For 2026 the limit is $7,500, or $8,600 if you are 50 or older (a $1,100 catch-up). This calculator applies that limit and indexes it forward by your COLA assumption. Note that contributions also phase out above certain income levels — that income test is not modeled here.
- Why is Roth growth valuable?
- Qualified Roth withdrawals are tax-free, so the entire balance shown is generally yours to spend in retirement — unlike a traditional pre-tax account where withdrawals are taxed as income.
- Is a Roth IRA better than a traditional account?
- It depends on whether you expect a higher tax rate now or in retirement. Roth favors paying tax now while rates are lower; traditional favors deferring. Many people use both — see our Traditional vs Roth calculator to compare after-tax outcomes.
This calculator is for educational purposes only and does not constitute financial, tax, or investment advice. It caps contributions at IRS limits indexed forward from verified 2026 figures by your COLA assumption; it does not model the income phase-out for high earners, the five-year rule, or future tax-law changes. COLA is an assumption, not a guarantee.