Roth IRA Calculator

The 2024 Roth IRA contribution limit is $7,000 per year, or $8,000 if you are age 50 or older (catch-up contribution). These limits apply to the total of all Traditional and Roth IRA contributions combined.

For 2024, single filers with MAGI above $161,000 cannot contribute directly to a Roth IRA (phase-out begins at $146,000). Married filing jointly, the limit is $240,000 (phase-out at $230,000). Above these limits, consider a Backdoor Roth IRA conversion.

A Roth IRA is generally better if you expect to be in a higher tax bracket in retirement, are young with decades of tax-free growth ahead, or want flexibility (contributions can be withdrawn penalty-free anytime). A Traditional IRA is better if you need the tax deduction now and expect lower taxes in retirement.

You can withdraw your Roth IRA contributions (not earnings) at any time, tax-free and penalty-free. Earnings can be withdrawn tax-free after age 59 and a half if the account has been open for at least 5 years. Early withdrawal of earnings incurs a 10% penalty plus income tax.

A Backdoor Roth IRA is a strategy for high earners who exceed Roth IRA income limits. You contribute to a Traditional IRA (non-deductible) and then convert it to a Roth IRA. This is legal and commonly used, but consult a tax professional for your specific situation.