Calculate your Roth IRA retirement savings potential, understand tax benefits, and plan your long-term investment strategy. See how tax-free growth can accelerate your retirement goals.
2025 limit: $7,000 ($8,000 if 50+)
Tax-Free Growth
Your investments compound without annual tax drag
Tax-Free Withdrawals
Qualified distributions are completely tax-free
No RMDs
No required minimum distributions at age 73
Flexible Withdrawals
Contributions can be withdrawn penalty-free anytime
Estate Planning
Tax-free inheritance for your beneficiaries
Hedge Against Tax Increases
Protect against future higher tax rates
A Roth IRA is a retirement savings account that offers tax-free growth and tax-free withdrawals in retirement. Unlike traditional IRAs, you contribute after-tax dollars, but your investments grow tax-free and qualified withdrawals are completely tax-free.
For 2025, the annual contribution limit is $7,000 for individuals under 50 and $8,000 for those 50 and older. These limits apply to all your IRAs combined, not per account.
Roth IRA contributions are subject to income limits. For 2025, single filers can contribute the full amount if their modified adjusted gross income is under $146,000, with reduced contributions up to $161,000.
Roth IRAs are ideal for young investors in lower tax brackets, those who expect higher taxes in retirement, and anyone who wants tax-free income in retirement. They're particularly valuable for long-term growth due to the power of tax-free compounding.
Since Roth IRAs offer tax-free growth, they're excellent for high-growth investments like stocks and equity funds. The longer your time horizon, the more valuable the tax-free compounding becomes.