Why a Roth IRA is so powerful
With a Roth IRA you pay tax on the money now, then it grows and comes out tax-free later. The "tax-free gains you keep" figure above is money that would be taxed in a regular account — in a Roth, it's all yours. Over decades of compounding, that tax savings can be enormous.
Roth IRA basics
- After-tax contributions: no deduction now, but tax-free growth and withdrawals later.
- Annual limits & income limits apply: the IRS sets a yearly contribution cap and phases out eligibility at higher incomes — check current figures.
- Flexible: you can generally withdraw your own contributions (not earnings) without penalty.
- Great for younger savers: the more years to grow, the bigger the tax-free payoff.
Open or grow your Roth IRA
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Most major brokerages offer free Roth IRAs with low-cost index funds.
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Find an advisor →Frequently asked questions
Roth or Traditional IRA?
Roth wins if you expect to be in the same or a higher tax bracket in retirement (and most young savers do). Read Roth vs Traditional IRA for the full breakdown.
Does this include the contribution limit?
No — the calculator doesn't cap your monthly amount. Make sure your annual total stays within the current IRS limit.
Related tools
Compare with your workplace plan on the 401(k) calculator or see your full retirement picture on the retirement calculator.