Financial Calculators

Roth IRA Savings Calculator

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. The tax shield is better than a Variable Annuity or a Traditional IRA that only provide tax deferred growth. The Roth IRA provides truly tax-free growth.

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Definitions

Current age:Your current age.
Annual contribution:The amount you will contribute to your Roth IRA each year. It is important to note that some high income households do not qualifiy for a Roth IRA contribution. Currently single filers with incomes over $110,000 cannot make Roth IRA contributions. If you are married and your household income is over $160,000 you are also excluded from making Roth IRA contributions. There are no income limits for contributing to a regular IRA. For the purposes of this calculator, we assume that your income does not limit your ability to contribute to a Roth IRA. This calculator also assumes that you make your contribution at the beginning of each year.
Expected rate of return:The annual percent you expect to earn on your investment.
Age of retirement:Age you wish to retire. This calculator assumes that the year you retire you do not make any contributions to your IRA. So if you retire at age 65, your last contribution happened when you were actually 64.
Marginal tax rate:The marginal tax rate you expect to pay on your taxable investments.
Years until retirement:Number of years before retirement.
Roth total at retirement:Total value in your ROTH IRA at your retirement.
Total taxable savings:The total amount you would have accumulated by retirement in a taxable savings account.


information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.