Roth IRA Calculator Project tax-free growth, optimize backdoor conversions, and compare Roth vs. Traditional — with 2025 ...

Roth IRA Calculator

Project tax-free growth, optimize backdoor conversions, and compare Roth vs. Traditional — with 2025 IRS rules and benchmarks.

Standard Roth

Backdoor Roth

Roth vs. Traditional

Withdrawals

Current Age

Retirement Age

Initial Balance ($)

Annual Contribution ($)

Expected Return (%)

Filing Status Single Married Filing Jointly

Annual Contribution ($)

Years

Pre-Tax IRA Balance ($)

Current Tax Bracket (%)

Retirement Bracket (%)

Years to Retirement

Account Balance ($)

Contributions ($)

Age

Withdrawal Amount ($)

$0

Future Value

$0

Tax-Free Earnings

$0

Backdoor Value

—

Tax Benefit

Roth Growth Breakdown

How Roth IRAs Work

Growth Formula**:

$$FV = P(1+r)^n + C \times \frac{(1+r)^n - 1}{r}$$

All growth is **tax-free** if withdrawn after 59½ and 5-year rule met.

Example** ($7K/yr @ 6.5% for 35 yrs): • Contributions = $245,000 • Tax-free growth = $697,000 • **Total = $942,000 (100% tax-free)**

✅ Pro Tip**: Roth is ideal for young earners in lower brackets — tax at 12% now vs. 22% later.

Roth IRA Red Flags

⚠️ Avoid these dangerous mistakes:

• Pro-rata tax bomb** — $50K pre-tax IRA + $7K backdoor = 88% of conversion taxed
• Early withdrawal of earnings** — $10K earnings withdrawn at 45 = $2.4K tax + $1K penalty
• Mega backdoor without plan** — Non-Roth 401(k) after-tax → Roth IRA requires in-plan conversion option
• Missing 5-year clocks** — Each conversion has its own 5-yr clock for earnings

✅ Smart Roth Strategies**:

• Do backdoor Roth **before** rolling 401(k) → IRA (keep pre-tax balance at $0)
• Convert Traditional → Roth in **low-income years** (e.g., early retirement)
• Withdraw **contributions first** (always tax/penalty-free)

2025 Roth IRA Benchmarks

Scenario	Annual	35-Yr Balance	Tax Savings
$7K/yr, 6.5%	$245K in	$942K	$204K (22% bracket)
Backdoor $7K × 10	$70K in	$98K	$21K (22% bracket)
Roth vs. Trad	24% → 22%	Roth +$38K	Break-even at 18 yrs

📉 2025 Income Limits**:

• Single**: Full $7K → $150K, phaseout $150K–$160K, $0 → >$160K
• MFJ**: Full $14K → $230K, phaseout $230K–$240K, $0 → >$240K

How to Use This Calculator

➡️ Standard Roth

“$7K/yr for 35 yrs @ 6.5% — what’s my tax-free balance?” ($942K)

➡️ Backdoor Roth

Model $7K/yr for 10 yrs with $0 pre-tax IRA → $98K tax-free

➡️ Roth vs. Traditional

24% now vs. 22% in retirement — Roth wins by $38K

➡️ Withdrawals

“$50K balance ($21K contributions), age 45, withdraw $15K — what’s taxed?” ($0 if ≤$21K; $6K taxed if >$21K)

Note: Uses exact compound formulas. Backdoor assumes conversion in same year. Withdrawals follow IRS ordering rules (contributions first, then conversions, then earnings).