Roth IRA Calculator

Project tax-free Roth IRA growth and see your retirement income potential.

Savings Plan

1%20%
1 yr40 yrs

Future Value

₹10,66,390

Total Invested

₹7,00,000

Total Returns

₹3,66,390

Wealth Multiplier

InvestedReturns

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Roth IRA Calculator Formula & How It Works

FV = PMT × [(1+r)ⁿ − 1] / r (all growth tax-free)
  • 2025 contribution limit: $7,000 ($8,000 if age 50+)
  • Income limits: phases out $150,000–$165,000 (single), $236,000–$246,000 (married)
  • Qualified withdrawals: completely tax-free after age 59½
  • Contributions (not earnings) can be withdrawn tax-free anytime

A Roth IRA is funded with after-tax money, but all growth and qualified withdrawals are completely tax-free. This makes it extremely valuable if you expect to be in a higher tax bracket in retirement, or if you want tax diversification. Unlike traditional IRA, there are no required minimum distributions (RMDs) during your lifetime.

Roth IRA Calculator FAQs

Should I choose a Roth IRA or traditional IRA?

Roth IRA is generally better if you: are in a lower tax bracket now than you'll be later, have decades until retirement (longer tax-free compounding), or want flexibility (no RMDs, can withdraw contributions early). Traditional IRA is better if you need the current tax deduction.

What is the backdoor Roth IRA?

If your income exceeds Roth IRA limits, you can contribute to a non-deductible traditional IRA and then convert it to Roth IRA. This 'backdoor' conversion is legal with no income limit on conversions. Pro-rata rule applies if you have other traditional IRA funds.

Can I withdraw from my Roth IRA early?

Roth IRA contributions (principal) can be withdrawn anytime, tax-free and penalty-free. Earnings withdrawn before age 59½ or before the account is 5 years old may be subject to taxes and 10% penalty (with exceptions for first home, disability, etc.).

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