Roth IRA calculator 2024
Creating a Roth IRA can make a big difference in your retirement savings. There is no tax deduction for contributions made to a Roth IRA, however all future earnings are sheltered from taxes, under current tax laws.
For more information on the fields in this calculator, reference our tables and explainers further down the page.
Your marginal tax rate is 22% based on your household income and tax filing status.
Contribute the maximum allowed to your account each year. This includes the catch-up contribution available when you are age 50 or over.
Definitions
1. Starting balance
The initial amount of money you have in your Roth IRA account. This could be from previous contributions or transfers from other retirement accounts.
2. Expected rate of return
The annual percentage gain you expect your investments to earn. This rate can vary based on market conditions and the types of investments you choose.
3. Marital status
Your marital status can influence your contribution limits and tax benefits. Different filing statuses have different income thresholds and contribution limits.
4. Your age
Your current age is a significant factor in retirement planning. The younger you start, the more time your investments have to grow
5. Age you want to retire at
This is the age when you plan to start withdrawing funds from your Roth IRA.
6. Marginal tax rate
The tax rate you pay on each additional dollar of income. This rate helps estimate the tax savings from Roth IRA contributions, as contributions are made with after-tax dollars.
7. Your income
Your annual income affects your eligibility to contribute to a Roth IRA and the phase-out limits for contributions. For 2024, the phase-out ranges for Roth IRA contribution limits are:
| Filing Status | Income Range |
|---|---|
| Single | $138,000 - $153,000 |
| Married Filing Jointly | $218,000 - $228,000 |
| Married Filing Separately | $0 - $10,000 |
Source: IRS.gov.
8. Annual contributions
The amount you plan to contribute to your Roth IRA each year is subject to IRS limits, which vary based on your income and filing status. For 2024, the contribution limits are outlined below:
| Filing Status | Roth IRA Income Limits | Roth IRA Contribution Limits 2024 |
|---|---|---|
| Single/HOH/MFS (no spouse) | $0 - $146,000 | $7,000 ($8,000 if 50 or older) |
| $146,000 - $161,000 | Contribution is reduced | |
| $161,000 or more | No contribution allowed | |
| Married Filing Jointly/Surviving Spouse | $0 - $230,000 | $7,000 ($8,000 if 50 or older) |
| $230,000 - $240,000 | Contribution is reduced | |
| $240,000 or more | No contribution allowed | |
| Married Filing Separately (with spouse) | $0 - $10,000 | Contribution is reduced |
| $10,000 or more | No contribution allowed |
Source: IRS.gov. | HOH: Head of Household, MFS: Married Filing Separately
9. Maximize contributions
To fully utilize the benefits of a Roth IRA, it's advisable to contribute the maximum allowable amount each year.
10. Roth IRA balance at retirement
This is the total amount you will have in your Roth IRA at retirement, based on your contributions and expected rate of return.
11. Standard taxable account
An alternative to a Roth IRA where your investments are subject to taxes on dividends, interest, and capital gains.
12. Contributions
The amounts you add to your Roth IRA account each year. These contributions are made with after-tax income, allowing tax-free withdrawals in retirement.
13. Tax savings
One of the primary benefits of a Roth IRA is the tax savings on your investment earnings, which can be withdrawn tax-free in retirement.
Roth IRA alternatives
If you're ineligible to contribute to a Roth IRA or want to explore other options, consider these alternatives:
Traditional IRA: Contributions may be tax-deductible, and earnings grow tax-deferred.
401(k) or 403(b): Employer-sponsored plans with higher contribution limits and potential employer matching. How to roll over your 401(k) to IRA? >
Health Savings Account (HSA): Offers tax advantages for medical expenses and can be used as a supplemental retirement account.
Taxable investment account: No contribution limits, but investments are subject to taxes on earnings.
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.