A worked example
Starting with $15,000 at age 30 and contributing the full $7,000 a year at a 7% annual return projects to roughly $1.22 million by age 65. Of that, $245,000 was contributed — meaning roughly $963,000 is tax-free growth that will never be taxed again.
Frequently asked questions
What's the 2026 Roth IRA contribution limit?
$7,500 for those under 50, or $8,600 including the $1,100 catch-up for those 50 and over — combined across all your traditional and Roth IRAs, not per account.
Is there an income limit on contributing to a Roth IRA?
Yes — for 2026, the ability to contribute phases out between $153,000 and $168,000 of modified adjusted gross income for single filers, and between $242,000 and $252,000 for married couples filing jointly. Above the top of the range, direct contributions aren't allowed (though a 'backdoor Roth' conversion may still be an option).
Why is a Roth IRA described as 'tax-free' when contributions aren't deductible?
You pay tax on the money before it goes in, but qualified withdrawals in retirement — including all the growth — come out completely tax-free. That's different from a traditional IRA, where the deduction happens now but withdrawals are taxed later.
Can I withdraw Roth contributions before retirement without penalty?
Your own contributions (not the earnings) can generally be withdrawn at any time without tax or penalty, since you already paid tax on that money. Withdrawing earnings early is where taxes and a 10% penalty typically apply, with some exceptions.
This calculator provides estimates for general informational purposes only and is not tax or financial advice. Contribution and income limits reflect 2026 IRS figures and change over time. Actual investment returns are not guaranteed.