Roth Account Calculator
Calculate the tax-free growth of your Roth IRA, Roth 401(k), or Roth 403(b) account. See how compound interest and annual contributions can build your retirement nest egg. Compare different contribution amounts, rates of return, and time horizons.
What Is a Roth Account?
A Roth account (Roth IRA, Roth 401(k), or Roth 403(b)) is a retirement savings vehicle that offers tax-free growth and tax-free withdrawals in retirement. You contribute after-tax dollars, meaning you've already paid income taxes on the money you put in. The key benefit is that all investment earnings grow tax-free, and qualified withdrawals after age 59½ are completely tax-free.
Unlike traditional retirement accounts where you get a tax deduction now but pay taxes later, Roth accounts reverse that equation: you pay taxes now and enjoy tax-free income in retirement. This makes Roth accounts especially valuable if you expect to be in a higher tax bracket in the future.
How Does the Roth Account Calculator Work?
The calculator uses the future value of an annuity formula to project your Roth account balance:
Future Value = P(1 + r/n)n×t + C × [((1 + r/n)n×t − 1) / (r/n)]
Where:
P = Current balance
r = Annual rate of return (as decimal)
n = Compounding frequency per year
t = Number of years until retirement
C = Annual contribution (including employer match for 401(k)/403(b))
For Roth 401(k) and 403(b) accounts, the calculator also includes employer matching contributions. Important: Employer matching contributions are always pre-tax (traditional), even in a Roth 401(k) or 403(b) — those funds will be taxed upon withdrawal.
Why Use This Roth Account Calculator?
- Multiple Account Types: Supports Roth IRA, Roth 401(k), and Roth 403(b).
- Employer Match: Includes employer matching for 401(k) and 403(b) accounts.
- Tax-Free Growth: See the power of tax-free compound growth over decades.
- Inflation Adjustment: See your future balance in today's purchasing power.
- Visual & Detailed: View a growth chart and year-by-year breakdown.
- Free & Private: No registration, no data storage.
Roth vs. Traditional: Which Should You Choose?
Choose Roth if: You expect to be in a higher tax bracket in retirement, or you want tax-free income in retirement. Roth accounts also have no Required Minimum Distributions (RMDs) during your lifetime.
Choose Traditional if: You expect to be in a lower tax bracket in retirement, or you need the tax deduction now to reduce your current tax bill.
Many people diversify: Contributing to both Roth and Traditional accounts gives you flexibility to manage your tax bracket in retirement.
Roth Account Contribution Limits
- Roth IRA (2025): $7,000 under 50 | $8,000 age 50+
- Roth IRA (2026): $7,500 under 50 | $8,600 age 50+
- Roth 401(k)/403(b) (2025): $23,000 under 50 | $30,500 age 50+
- Roth 401(k)/403(b) (2026): $23,500 under 50 | $31,000 age 50+
Roth IRA Income Limits : Single filers: phase out starts at $150,000; Married filing jointly: phase out starts at $236,000. Roth 401(k)/403(b) accounts have no income limits.
❓ Roth Account FAQ
What is a Roth account?
A Roth account (Roth IRA, Roth 401(k), or Roth 403(b)) is a retirement account where you contribute after-tax dollars. The money grows tax-free, and qualified withdrawals in retirement are completely tax-free.
What is the difference between a Roth IRA and a Roth 401(k)?
Roth IRAs are individual accounts with lower contribution limits ($7,000 in 2025) and income limits. Roth 401(k)s are employer-sponsored with higher limits ($23,000 in 2025) and no income limits. Roth 401(k)s may also include employer matching contributions.
What are the contribution limits for a Roth IRA in 2025?
For 2025, the Roth IRA contribution limit is $7,000 if you're under 50, and $8,000 if you're 50 or older. For 2026, the limits are $7,500 (under 50) and $8,600 (50+).
What are the contribution limits for a Roth 401(k) in 2025?
For 2025, the Roth 401(k) contribution limit is $23,000 if you're under 50, and $30,500 if you're 50 or older. For 2026, the limits are $23,500 (under 50) and $31,000 (50+).
Who can contribute to a Roth IRA?
Single filers with MAGI under $150,000 can contribute fully (2025). Phase out: $150,000-$165,000. Married filing jointly: under $236,000, phase out $236,000-$246,000. Roth 401(k)/403(b) accounts have no income limits.
When can I withdraw from my Roth account tax-free?
To withdraw earnings tax-free, you must meet two conditions: (1) the account has been open for at least 5 years, and (2) you are age 59½ or older, disabled, or using up to $10,000 for a first-time home purchase. Contributions (not earnings) can be withdrawn anytime tax-free.
What is the 5-year rule for Roth accounts?
Your first Roth account must be open for at least 5 tax years before you can withdraw earnings tax-free, regardless of your age. The 5-year clock starts on January 1 of the year you made your first contribution.
Are employer matching contributions in a Roth 401(k) tax-free?
No. Employer matching contributions are always pre-tax (traditional), even in a Roth 401(k) or Roth 403(b). Those funds will be taxed upon withdrawal.
What are Required Minimum Distributions (RMDs)?
Roth IRAs have no Required Minimum Distributions during your lifetime. Roth 401(k)s and 403(b)s do have RMDs starting at age 73 (unless you roll them into a Roth IRA). This is a key advantage of Roth IRAs.
Should I choose a Roth or Traditional account?
Choose Roth if you expect to be in a higher tax bracket in retirement or want tax-free income. Choose Traditional if you expect a lower bracket or need the tax deduction now. Many people diversify with both.
What rate of return should I use for projections?
Conservative: 5-6% (bond-heavy portfolio), Moderate: 7-8% (balanced 60/40 stocks/bonds), Aggressive: 9-10% (stock-heavy portfolio). The historical S&P 500 average is about 10%.
Why start a Roth account early?
A 25-year-old contributing $500/month to a Roth account earning 7% will have over $1.2 million tax-free by age 65. Waiting 10 years reduces that to about $600,000 — half the amount.
Can I have both a Roth IRA and a Roth 401(k)?
Yes. You can contribute to both a Roth IRA and a Roth 401(k) in the same year, as long as you meet the income limits for the Roth IRA. This allows you to maximize your tax-free retirement savings.
What is a Roth conversion?
A Roth conversion is when you move funds from a Traditional IRA or Traditional 401(k) into a Roth account. You'll owe income taxes on the converted amount in the year of the conversion, but future growth and withdrawals will be tax-free.
How does inflation affect my Roth account balance?
Inflation reduces the purchasing power of your future balance. Our calculator includes an inflation adjustment option to show your projected balance in today's dollars, giving you a more realistic picture of your retirement buying power.
What happens to my Roth account if I change jobs?
You can keep your Roth 401(k) with your former employer, roll it over to your new employer's plan, or roll it into a Roth IRA. Rolling to a Roth IRA gives you more investment choices and eliminates RMDs.
What is the difference between a Roth 401(k) and a Roth 403(b)?
Roth 401(k)s are offered by for-profit companies, while Roth 403(b)s are offered by non-profit organizations, schools, and certain government entities. Both have the same contribution limits and tax treatment.
How accurate is this Roth account calculator?
This calculator provides estimates based on the information you enter and standard financial formulas. Actual results may vary based on market performance, contribution changes, and tax laws. Always consult a financial advisor for personalized retirement planning.