Roth IRA Calculator

For 2024, the maximum annual contribution is $7,000 ($8,000 if age 50+). That's $583/month. Income limits apply: single filers must earn less than $161,000 (phases out from $146,000) to contribute the full amount.

Tax-free growth is incredibly valuable over decades. $500/month at 8% return for 40 years grows to about $1.74 million — and you pay ZERO taxes on withdrawals. In a traditional account, you'd owe taxes on every dollar withdrawn.

Contributions (not earnings) can be withdrawn anytime tax and penalty-free. Earnings can be withdrawn tax-free after age 59½ if the account has been open at least 5 years. Before that, earnings withdrawals may incur a 10% penalty.