Roth IRA Savings Calculator

How much can you save in a Roth IRA? In a Roth IRA, you pay taxes on your income now, but you can withdraw the funds tax free when you retire. To see how much you would need to contribute, enter your current tax bracket, the amount you will deposit each year, the number of years you will save, and the estimated rate of return you expect to earn. If you want, you can enter your annual deposit amount in pre-tax dollars and the calculator will automatically compute what the after tax deposit amount would be. Interest will be compounded annually.

Because this is a Roth IRA, your contribution limit is after taxes, so your effective contribution limit is higher than a regular IRA.

Annual deposit amount: $
Deposit amount is:
Current tax rate: %
Number of years to save:
Rate of return: %

If you are in a 28.00% tax bracket now, your after tax deposit amount would be $720.00. You will save $18,264.46 over 15 years.

Qualifying contributions are usually limited as follows:

Year	Annual Contribution Limit
2002 through 2004	$3,000 per individual
2005 through 2007	$4,000 per individual
2008 onward*	$5,000 per individual

* Beginning in 2009, the contribution limit will adjust annually for inflation in $500 increments

If you are age 50 or over, you may qualify for an additional catch-up contribution as follows:

Year Additional Catch-Up Contribution

2002 through 2005 $500 per individual

2006 onward $1,000 per individual

Your actual qualifying contribution may differ significantly from the amounts listed above (for reasons such as income, filing status, employer benefits, and more). We strongly recommend that you consult your tax advisor before contributing to a retirement program.

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The information provided by these calculators are estimates based on the information entered and may vary from your actual loan, mortgage, investment or savings results. The calculated results are not guaranteed to be accurate and are in no way endorsed, offered or guaranteed by Financial Strategies Online.