How a Roth IRA works
You put money into a Roth IRA after paying income tax on it. The money then grows tax-free, and qualified withdrawals in retirement are not taxed at all. A withdrawal is qualified when you are at least 59½ and your first Roth contribution was at least five years ago.
2026 Roth IRA limits
- Contribution limit – $7,500, or $8,600 if you are 50 or older. The limit is shared with any traditional IRA contributions.
- Income limits – the amount you can contribute shrinks when modified AGI is between $153,000 and $168,000 for single filers, and between $242,000 and $252,000 for married couples filing jointly. Above the top of the range you cannot contribute directly.
- Earned income – you can't contribute more than you earned from work that year, though a working spouse can fund a spousal IRA.
The calculator finds your allowed contribution and projects your balance at retirement, then compares it with the same savings in a taxable account where part of each year's growth goes to taxes.
Frequently asked questions
Can I take money out of a Roth IRA early?
You can withdraw your own contributions at any time without tax or penalty. Withdrawing earnings before 59½ usually means income tax plus a 10% penalty, with some exceptions.
Roth or traditional IRA: which is better?
A Roth is often better if you expect a higher tax rate in retirement, or you are early in your career. A traditional IRA may be better if you get a deduction now and expect a lower rate later.
What is the deadline for 2026 Roth IRA contributions?
You can contribute for 2026 until the tax filing deadline, generally April 15, 2027.