Project your tax-free retirement savings with our 2026 Roth IRA calculator. See how much your contributions could grow and estimate your tax savings.
Calculate Growth$7,000
2026 Limit
$1,000
Catch-Up (50+)
7%
Avg Annual Return
$42,000
Avg Balance
A Roth IRA is one of the most powerful retirement savings vehicles available to Americans. Unlike Traditional IRAs or 401(k)s where you defer taxes until retirement, Roth IRAs are funded with after-tax dollars—meaning your money grows completely tax-free and qualified withdrawals are also tax-free.
According to the Investment Company Institute (ICI), over 26 million U.S. households own Roth IRAs, with combined assets exceeding $1.2 trillion. The IRS sets annual contribution limits that are adjusted for inflation, with the 2026 limit at $7,000 ($8,000 for those 50+).
The power of tax-free compounding cannot be overstated. A 25-year-old contributing $7,000 annually until age 65 at a 7% average return would accumulate approximately $1.5 million—all withdrawable tax-free in retirement. This tax-free status also makes Roth IRAs excellent for estate planning, as beneficiaries inherit the funds without income tax liability.
Tax-free growth
Tax-free withdrawals in retirement
No RMDs for original owner
Contributions can be withdrawn anytime
Pass tax-free to heirs
Pro Tip: Start early! Time is your greatest ally with compound growth. Even small contributions in your 20s can outperform large contributions in your 40s.
Backdoor Roth: High earners can contribute to a Traditional IRA (non-deductible) and convert to Roth—no income limits on conversions.
$7,000/year × 40 years @ 7% = ~$1.5 Million
Starting at age 25 and contributing the max until 65, you'd contribute $280,000 total—but end up with over $1.5M, all tax-free. Starting 10 years later (at 35) would yield only ~$700,000. Time in the market beats timing the market.
See how your Roth IRA contributions could grow over time and estimate your future tax savings.
Calculate Growth