Explain it like I’m 5
A Roth IRA is a special savings box for when you’re old. You put in money you’ve already paid taxes on. Inside the box, the money is invested and grows — sometimes a lot, over many years.
Here’s the magic part: when you take the money out in retirement, none of it is taxed — not even all the growth. It’s like planting seeds and keeping 100% of the harvest.
There are rules, though: you can only put in so much each year, and if you earn a lot, you can put in less (or nothing). This calculator tells you how much you’re allowed to add this year, and what the box could grow to by the time you retire.
Words you’ll see, in plain English
- Roth IRA
- A retirement account where you pay tax on the money now, then it grows and comes out tax-free when you retire.
- IRA (individual retirement account)
- A retirement savings account you open yourself, with special tax rules.
- MAGI (modified adjusted gross income)
- Your income after a few specific adjustments. The IRS uses it to decide things like whether you can put money in a Roth IRA.
- Filing status
- Which group you file taxes as — single, married filing jointly, married filing separately or head of household. It changes your tax brackets.
- Compound interest
- Interest that earns its own interest. Like a snowball rolling downhill: the bigger it gets, the faster it grows.
More money words explained simply in our glossary.
2026 Roth IRA contribution limits
| Age | Maximum contribution |
|---|---|
| Under 50 | $7,500 |
| 50 and older | $8,600 ($7,500 + $1,100 catch-up) |
You can’t contribute more than your taxable compensation for the year, and the limit is shared across all of your IRAs.
2026 Roth IRA income limits
| Filing status | Full contribution if MAGI is below | Reduced contribution | No contribution at or above |
|---|---|---|---|
| Single or head of household | $153,000 | $153,000 – $168,000 | $168,000 |
| Married filing jointly | $242,000 | $242,000 – $252,000 | $252,000 |
| Married filing separately* | — | $0 – $10,000 | $10,000 |
*If you lived with your spouse at any time during the year. Inside the phase-out range, the calculator follows the IRS worksheet in Publication 590-A: the limit is reduced in proportion to how far into the range you are, rounded up to the next $10, with a $200 minimum.
How a Roth IRA grows
You contribute money you’ve already paid tax on. Inside the account, interest, dividends and gains compound with no annual tax, and qualified withdrawals in retirement are completely tax-free. That is why the “tax saved vs. taxable” number above can be large: in a regular brokerage account, the same growth would eventually be taxed as capital gains (the calculator assumes it’s taxed once, at the rate you enter, when you sell — real taxable accounts also lose a little to taxes on dividends each year).
Balance next year = (balance + this year’s contribution) × (1 + return)
Example
A 30-year-old with $15,000 already in a Roth IRA who contributes $7,500 every year and earns 7% would have roughly $1.3 million at 65. About $278,000 of that would be contributions and the rest tax-free growth. Use the calculator to see your own numbers.
Roth IRA rules worth knowing
- Earned income required: you (or your spouse, for a spousal IRA) need taxable compensation.
- Contributions come out first: you can always withdraw what you put in without tax or penalty.
- The five-year rule: earnings are tax-free only once five tax years have passed since your first Roth contribution and you’re 59½ (or another qualifying event applies).
- No required minimum distributions for the original owner — the money can keep growing for as long as you live.
- Too much income? A backdoor Roth (non-deductible traditional IRA contribution, then conversion) may still work; mind the pro-rata rule.
Limits are adjusted for inflation each year. Figures on this page are for tax year 2026 from the IRS.
Frequently asked questions
How much can I contribute to a Roth IRA in 2026?
Up to $7,500, or $8,600 if you are 50 or older, as long as you have at least that much taxable compensation. The limit is reduced if your modified AGI is between $153,000 and $168,000 (single) or $242,000 and $252,000 (married filing jointly), and is zero above those ranges. The IRA limit is shared across all your traditional and Roth IRAs.
When can I withdraw money from a Roth IRA?
Your contributions can be withdrawn at any time, tax- and penalty-free. Earnings are tax-free once the withdrawal is “qualified”: generally you must be at least 59½ and at least five tax years must have passed since your first Roth IRA contribution. Withdrawing earnings before then can trigger income tax and a 10% penalty unless an exception applies.
What is the deadline for 2026 Roth IRA contributions?
You can contribute for 2026 until your federal tax filing deadline in 2027 (normally around April 15), not including extensions.
Roth IRA or traditional IRA — which is better?
With a Roth you pay tax now and withdraw tax-free later; with a traditional IRA you may get a deduction now and pay tax on withdrawals. A Roth tends to win if you expect your tax rate in retirement to be the same or higher than today, and it has no required minimum distributions for the original owner. Many people use both to diversify their future tax situation.
What is a backdoor Roth IRA?
If your income is too high to contribute directly, you can make a non-deductible contribution to a traditional IRA and then convert it to a Roth. If you have other pre-tax IRA balances, the pro-rata rule makes part of the conversion taxable, so check with a tax professional first.
These results are estimates for education only, based on the assumptions you enter. They are not financial, investment or tax advice. Real returns, rates and taxes vary. See our methodology anddisclaimer.