Roth IRA Calculator
Project the tax-free balance of a Roth IRA at retirement, with 2025 IRS contribution limits and MAGI phase-out applied automatically by filing status.
Tax-free balance at retirement
£661,225.50
- Total contributed (your basis)
- £210,000.00
- Tax-free investment growth
- £451,225.50
- Annual tax-free retirement income (4% rule)
- £26,449.02
- Monthly tax-free retirement income (4% rule)
- £2,204.09
- Years until retirement
- 30
- Your Roth contribution limit (after MAGI phase-out)
- £7,000.00
- Base age limit (before MAGI phase-out)
- £7,000.00
- Effective annual contribution used
- £7,000.00
Projects 30 years of $7,000 annual Roth contributions at 7% expected return using the ordinary-annuity formula FV = C · ((1+r)^n − 1) / r. The full balance is federally tax-free in retirement (qualified withdrawals under IRC §408A require age 59½ and a five-year holding period). Estimated tax-free retirement income uses the Bengen 4% safe-withdrawal rule (indicative — sequence-of-returns risk applies).
How to use this calculator
Enter your current age, the age you plan to retire, your planned annual Roth contribution, an expected annual return, your tax filing status, and your modified adjusted gross income (MAGI). The headline shows your tax-free Roth balance at retirement. The breakdown shows your MAGI-adjusted contribution limit, total contributed (your basis, which you can withdraw tax-free at any time), tax-free investment growth, and an estimated annual tax-free retirement income using the 4% safe-withdrawal rule. If your MAGI is above the upper phase-out threshold for your filing status, direct Roth contributions are not permitted — the calculator flags this and suggests the backdoor Roth route.
How the calculation works
Roth IRAs (IRC §408A) accept after-tax contributions that grow tax-free; qualified withdrawals (age 59½ AND a five-year holding period) are entirely federally tax-free. The calculator first applies the 2025 IRS MAGI phase-out (Notice 2024-80, Pub 590-A Worksheet 2-2) to your filing status: Single / HoH phases out between $150,000–$165,000, Married Filing Jointly between $236,000–$246,000, and Married Filing Separately (if you lived with your spouse) between $0–$10,000. Within the band the limit reduces pro-rata and rounds up to the nearest $10, with a $200 floor while still partially eligible. The reduced limit then feeds the ordinary-annuity future-value formula FV = C × ((1+r)^n − 1) / r, where C is your effective annual contribution, r is your expected return, and n is years to retirement. Roth IRAs also have no required minimum distributions during the owner's lifetime — a structural advantage over Traditional IRAs and pre-SECURE-2.0 Roth 401(k)s.
Worked example
A 35-year-old single filer with $80,000 MAGI contributes $7,000 per year to a Roth IRA for 30 years (to age 65) at a 7% expected return. MAGI is below the $150,000 phase-out threshold so the full $7,000 limit applies. Future value = 7,000 × ((1.07)^30 − 1) / 0.07 = 7,000 × 94.461 = $661,225. The entire $661,225 is tax-free in retirement. Total contributed is $210,000 (your basis), so investment growth is $451,225. Applying the Bengen 4% safe-withdrawal rule gives roughly $26,449 of annual tax-free retirement income, or $2,204 per month, before Social Security and any other pensions.
Frequently asked questions
What is the 2025 Roth IRA contribution limit?
For 2025, the base limit is $7,000 if you are under 50, or $8,000 if you are 50 or older (a $1,000 catch-up contribution). This is a per-person aggregate across all Traditional and Roth IRAs combined — you can split between them but the total cannot exceed the limit. Source: IRS Notice 2024-80 (cost-of-living adjustments for tax year 2025).
What MAGI limits apply to Roth IRA contributions in 2025?
Direct Roth contributions phase out by filing status. For 2025: Single / Head of Household phases out between $150,000 and $165,000; Married Filing Jointly (and Qualifying Widow(er)) between $236,000 and $246,000; Married Filing Separately who lived with their spouse at any time during the year between $0 and $10,000. Below the lower threshold you can contribute the full base limit; above the upper threshold you cannot contribute directly. Source: IRS Pub 590-A (2025), Table 2-1.
What is a "backdoor Roth" and when does it make sense?
A backdoor Roth is a two-step workaround for high earners whose MAGI exceeds the direct Roth limit: contribute (non-deductible) to a Traditional IRA, then convert it to Roth. The conversion is not income-capped. Watch the IRS pro-rata rule (IRC §408(d)(2)): if you have other pre-tax IRA balances (rollover IRA, SEP, SIMPLE), the conversion is taxed proportionally on the pre-tax fraction across all your IRAs — not just the new non-deductible contribution. Consult a tax adviser before executing one.
Are Roth IRAs subject to required minimum distributions (RMDs)?
No. Roth IRAs have never required RMDs during the owner's lifetime. Beneficiaries who inherit a Roth IRA generally must follow the 10-year rule introduced by the SECURE Act of 2019. Under SECURE 2.0 (effective 2024) Roth 401(k) accounts also no longer require lifetime RMDs. Traditional IRAs and 401(k)s do require RMDs starting at age 73 (born 1951–1959) or 75 (born 1960 or later) — see our RMD Calculator.
Can I withdraw my Roth contributions before retirement without penalty?
Yes — your contributions (basis) can be withdrawn at any time, at any age, federally tax- and penalty-free, because they were already taxed when you put them in. Earnings are different: to withdraw earnings tax- and penalty-free, you generally need to be at least 59½ and have held any Roth IRA for at least five tax years (the five-year clock starts January 1 of the tax year of your first Roth contribution). Some early-withdrawal exceptions apply (first-home purchase up to $10,000 lifetime, qualified higher-education expenses, certain medical bills) — see IRS Pub 590-B.
Roth IRA vs Roth 401(k) — which should I choose?
Both offer tax-free growth and tax-free qualified withdrawals, but they differ on contribution limits, employer matching, and rules. The 2025 Roth 401(k) limit is $23,500 (or $31,000 with the age-50 catch-up; $34,750 for the new age-60-to-63 super catch-up), versus the Roth IRA's $7,000/$8,000. Roth 401(k)s have no income limits on contributions. Roth IRAs offer broader investment choice and no RMDs during your lifetime. Many savers contribute to both: max the employer match in the 401(k), then the Roth IRA, then the rest in the 401(k).