Roth IRA Calculator Project tax-free retirement growth, compare Roth vs. Traditional, and plan Backdoor Roth conversions ...

Roth IRA Calculator

Project tax-free retirement growth, compare Roth vs. Traditional, and plan Backdoor Roth conversions — with 2025 IRS rules.

Growth Projection

Roth vs. Traditional

Backdoor Roth

Withdrawals

Current Age

Retirement Age

Annual Contribution ($)

Expected Return (%)

Current Balance ($)

Current Tax Bracket (%)

Future Tax Bracket (%)

Years to Retirement

AGI ($)

Filing Status Single Married Filing Jointly

Already Contributed? No Yes ($7K)

Account Balance ($)

Age at Withdrawal

Years Since First Contribution

$0

Projected Balance

$0

Tax-Free Growth

$0

Monthly Income (4% Rule)

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2025 Eligibility

Roth vs. Taxable Account Growth

How Roth IRAs Work

Roth IRA** = After-tax contributions → tax-free growth → tax-free withdrawals in retirement.

2025 Rules**:

• Contribution Limit**: $7,000 (<50), $8,000 (≥50)
• Income Limits (Single)**: • Full: ≤ $150,000 • Partial: $150K–$160K • None: > $160,000
• 5-Year Rule**: Earnings tax-free only after 5 years *and* age 59½
• No RMDs**: Unlike Traditional IRAs, Roth IRAs have no required minimum distributions

✅ Best for**:

• Young earners in low tax brackets
• Those expecting higher taxes in retirement
• People wanting tax diversification

Roth vs. Traditional: Which Is Better?

✅ Choose Roth if**:

• Your *future* tax rate > *current* rate (e.g., 24% now → 28% retired)
• You want tax-free income to avoid pushing Social Security into taxable range
• You plan to leave money to heirs (tax-free inheritance)

✅ Choose Traditional if**:

• Your *current* tax rate > *future* rate (e.g., 32% now → 22% retired)
• You need the tax deduction to afford contributions
• You’re near retirement and want lower AGI for ACA subsidies

📌 Pro Tip**: You can split contributions — e.g., $3,500 Roth + $3,500 Traditional.

Backdoor & Mega Backdoor Roth

Backdoor Roth (for high earners)**:

1. Contribute $7K to *Traditional IRA* (non-deductible)
2. Convert to *Roth IRA* (tax only on earnings, often $0 if done quickly)
3. → $7K/year of tax-free growth, even with $300K income

Mega Backdoor Roth** (if 401(k) allows after-tax):

• Contribute up to $46,500 post-tax to 401(k) (2025: $70K total − $23.5K pre-tax − $7K Roth)
• In-plan conversion to Roth 401(k) → roll to Roth IRA
• → Up to **$53,500/year tax-free growth** ($7K IRA + $46.5K 401k)

⚠️ **Pro-Rata Rule Warning**: If you have pre-tax IRA money, conversions are partially taxable — consider rolling old IRAs into 401(k) first.

How to Use This Calculator

➡️ Growth Projection

See how $7K/yr compounds over time — all tax-free at withdrawal.

➡️ Roth vs. Traditional

Compare after-tax value based on current/future tax rates.

➡️ Backdoor Roth

Check eligibility and plan high-income contributions.

➡️ Withdrawals

Verify if your withdrawal is qualified (tax/penalty-free).

Note: Assumes annual compounding, no fees, and constant return.