Roth IRA Calculator

Use our Roth IRA calculator to track how your retirement investments might grow over time. Get started preparing your future today.

What amount should I put into a Roth IRA

The amount you contribute to a Roth IRA will depend on your income, financial obligations, tax bracket and other factors.

However, Roth IRA's tax benefits on qualified distributions and capital gains make them a good investment vehicle.

For the 2022 tax year, you can contribute up $6,000 of your earnings (or the lesser amount if it was under $6,000). Your monthly contribution to 2022 will be $500 if you are aiming to contribute the maximum amount.

You may also make catch-up contributions if you're over 50.

Consider the following example to illustrate the benefits of compounding regular Roth IRA contributions. Let's assume you make $6,000 per year over a period of 20 years with an average interest accrual rate of 6%.

The total amount of your contributions for this period would be $126,000. However, the value of your Roth IRA balance is estimated to be close to $255,000.

Roth IRA Contributions to 2023

Modified gross Income (AGI)
Contribution limit
Married Filing Together or Qualifying Widow(er) < $218,000 Limitless possibilities
Married Filing Together Or Qualifying Widow(er) > $218,000, but $228,000 A reduced amount
Married Filing Together Or Qualifying Widow(er) > $228,000 zero
You were married and filed separately, but you lived with your spouse during the year < $10,000 A reduced amount
You were married and filed separately, but you lived with your spouse during the year > $10,000 zero
single or headof household or married filing separate if you didn't live with your spouse during the year < $138,000 Limitless possibilities
single or headof household or married filing separate if you didn't live with your spouse during the year > $138,000, but $153,000 A reduced amount
single or headof household or married filing separate if you didn't live with your spouse during the year > $153,000 zero

Your Roth IRA reduction

You can reduce the amount that you can contribute by following these steps:

  1. Start with your modified AGI.
  2. Add (1) to the amount:
    • $218,000 for filing a joint tax or qualifying widow(er),
    • $-0 if you are married and file a separate tax. If you were living with your spouse during the year,
    • $138,000 for all others
  3. Divide (2) the result by $15,000 ($10,000 for joint returns, qualifying widow(er), and married filing separate returns) to find out how many years you lived with your spouse.
  4. Multiply the maximum contribution limit before this adjustment and any reductions for contributions to traditional IRAs by (3).
  5. Add the result in (4) to the maximum contribution limit prior to the reduction. This is your reduced contribution limit.

Roth IRA Definitions

Here are key terms that are associated with Roth IRAs. It is important to understand their meanings in order to effectively incorporate this retirement account into your investment portfolio.

Roth IRA: This type of individual retirement account is known for its favorable tax status. Contributions are made after tax (i.e. there is no tax-deferral as a traditional IRA, 401(k), etc.) but capital gains and distributions will be exempt from tax.

Limits on annual contributions: How much you can contribute each year to your Roth IRA. Except for those who qualify for a catch up contribution of $7,000., the current limit for 2022 is $6,000

Modified adjusted Gross Income (MAGI). This is your modified adjusted gross, or adjusted income, after subtracting certain tax-exempt interest and taking certain tax deductions. This number is crucial for Roth IRAs as it will determine if you can or cannot contribute to a Roth IRA. A single taxpayer with a MAGI greater than $144,000 cannot contribute to a Roth IRA by 2022.

Tax filing status: You can file separately, jointly, or as a single taxpayer. The MAGI phase-out limit for Roth IRA contributions is also affected by your filing status. Single taxpayers are eligible to stop making Roth IRA contributions if their MAGI exceeds $144,000, but married taxpayers can't unless they have a MAGI of over $214,000.

Flation: Flation refers to the decline in your money's purchasing power due to increases in the prices of consumer goods and resources. It is crucial to invest your Roth IRA contributions in a way that beats inflation and maintains the portfolio's value.

Retirement Age: The date you intend to retire. It is important to know your retirement age so you can determine how much money you can save and how much you are able to withdraw from your Roth IRA based upon your life expectancy.

Life expectancy This is the expected length of your life, taking into account both personal and national health factors. Add your retirement age to your life expectancy and you can get an estimate of the amount of time your Roth IRA savings and other savings will last.

Expected Rate of Return: This is the amount that you expect your Roth IRA investments to grow over a time period (e.g., a calendar year). You can use our Roth IRA Growth Calculator to see how your portfolio size can change at different rates of return.

Minimum distribution (RMD), This is the amount that you must take to receive a Roth IRA distribution under law. It begins when you turn 72.

Compounded interest: Earning interest on top previously earned interest is the key to your Roth IRA's exponential growth.

Monthly retirement expenditure: This is the amount that you plan to spend each month on retirement to cover expenses such as food, housing, and health care.

Catch up contribution: People over 50 years old can make greater catch-up contributions to Roth IRAs ($7,000 in 2022, compared to $6,000 for the standard contribution).


Which is better, a 401k or a roth IRA.

Both accounts are excellent retirement options that offer distinct value propositions. A 401(k), for example, allows you to contribute more (e.g. $20,500 in 2022), while Roth IRA distributions, including gains, are exempt from tax.

How do I start a roth IRA.

There are many wealth management companies that can help you start a Roth IRA.

What makes our Roth IRA calculator better than Dave Ramsey's, Fidelity's, or NerdWallet?

While all calculators can provide similar data, our calculator was designed to be simple and accurate in terms of overall user experience.

Frequently Asked Questions

Can I store my gold IRA in my home?

An online brokerage account can be a great way to save your money. You have all the investment options you’d get if you had a traditional broker. However, you don’t require any licenses or qualifications. Plus, there are no fees for investing.

You can also use free tools offered by many online brokers to manage your portfolio. You can even download charts to view the performance of your investments.

Is it possible to take physical ownership of gold from my IRA

Many ask themselves whether they can physically possess gold in an IRA account. This is a legitimate concern because it is illegal.

If you take a closer look at the law, there is nothing that can stop you from having gold in your IRA.

The problem is that most people aren’t aware of how much money they could be saving by putting their precious gold in an IRA.

It is easy to toss gold coins, but it’s not easy to place them in an IRA. You’ll have to pay twice taxes if you keep your gold in your home. The IRS will collect once and the state where your residence is located will collect the other.

You can also lose your gold and have to pay twice the taxes. Why would you want to keep your gold in your house?

It might seem that you want the security of knowing your gold is safe inside your home. It is important to store your gold somewhere safer in order to prevent theft.

If you are planning to visit frequently, your gold should not be left at home. Thieves can easily steal your gold if you don’t keep it safe.

It is better to keep your gold in an insured vault. Then, your gold will be protected from fire, flood, earthquake, and robbery.

One advantage of storing your gold safely in a vault is the fact that you don’t have to worry too much about property tax. Instead, income tax will be charged on any gains made from the sale of your precious metal.

If you prefer not to pay tax on your precious metals, an IRA may be a good option. An IRA allows you to keep your gold free from income taxes, even though it earns interest.

Since you aren’t required to pay capital gains tax on your gold, you’ll have access to the full value of your investment whenever you want to cash it out.

You won’t have to move your gold because IRAs are federally regulated.

The bottom line? You can own your gold in an IRA. Only thing stopping you from owning gold in an IRA is your fear of getting it stolen.

What are the best ways to choose an IRA.

Understanding the type of account you have is the first step towards finding an IRA that suits your needs. This includes whether your goal is to open a Roth IRA (or a traditional IRA). You should also know how much money your have available to invest.

The next step is to choose the best provider for you. Some providers offer both, while others can only provide one type of account.

The fees associated with each option should be considered. Fees vary widely between providers and may include annual maintenance fees and other charges. For example, some providers charge a monthly fee based on the number of shares you own. Others charge only once per quarter.

Which type is best for an IRA?

When selecting an IRA for yourself, the most important thing is to find one that meets your lifestyle and goals. You must consider whether you want to maximize tax-deferred growth on your contributions, minimize taxes now and pay penalties later, or just avoid taxes altogether.

If you’re saving for retirement and don’t have much money invested, the Roth option could make sense. It is also an option if you are still working after age 59 1/2. You can expect to pay income taxes for any accounts that are withdrawn.

Traditional IRAs are more suitable if you intend to retire young. However, you will most likely owe taxes on any earnings from those funds. The Roth IRA could be more beneficial if you intend to continue working after age 65. This allows you the freedom to withdraw some, or all, of your earnings.

What are the different types of IRA?

There are three types of IRAs. Each type has its advantages and limitations. Below, we’ll discuss each one.

Traditional Individual Retirement Account (IRA).

A traditional IRA allows for you to contribute pretax money to an account, where you can defer tax on contributions made now and earn interest. When you retire, your withdrawals are not subject to tax.

Roth IRA

Roth IRAs allow you after-tax dollars to be deposited into an account. Any earnings will grow tax-free. The account allows you to withdraw funds for retirement.


This is similar to a Roth IRA, except that it requires employees to make additional contributions. The additional contributions are subject to tax, but earnings accrue tax-deferred. You may choose to convert the entire amount to a Roth IRA when you leave the company.

What proportion of your portfolio should you have in precious metals

Protect yourself against inflation by investing in physical gold. Because you are buying into the future value of precious metals and not the current price, when you invest in them, it is a way to protect yourself from inflation. So as prices rise, so does the value of your investment.

Any gains you make from investments that you hold onto for at least five year will be tax-free. If you decide to sell your investments after that period, you will be subject to capital gains tax. You can learn more about gold coins by visiting our website.


  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that you would owe income tax on the item’s value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • The maximum yearly contribution to an individual’s IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (
  • You can only purchase gold bars of at least 99.5% purity. (
  • SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (

External Links

How To

How to Decide if a Gold IRA ‘Is Right For You’

Individual Retirement accounts (IRAs) are the most common type of retirement account. IRAs are available through employers, banks, mutual funds, and financial planners. Individuals can contribute as much as $5,000 per year without any tax consequences. This amount can go into any IRA. However, there are limits on how much money you can put into certain IRAs. A Roth IRA is only available to those who are at least 59 1/2. If you’re under 50, you must wait until you reach age 70 1/2 before making contributions. In addition, some people who work for their employer may be eligible for matching contributions from their employer.

There are two main types of IRAs: Traditional and Roth. Traditional IRAs allow you to invest in stocks, bonds and other investments. A Roth IRA allows you to only invest in after-tax dollars. Roth IRA contributions don’t get taxed as soon as they are made. However, withdrawals from a Roth IRA will be taxed again. Some people choose to use a combination of these two accounts. Each type has its advantages and disadvantages. So what should you consider before deciding which type of IRA works best for you? Keep these three things in mind:

Traditional IRA Pros

  • Companies have different options when it comes to contribution options
  • Employer match possible
  • It is possible to save more than $5.000 per person
  • Tax-deferred tax growth until withdrawal
  • Limitations may apply based on income levels
  • Maximum contribution limit: $5,500 per annum (or $6,500 for married filing jointly).
  • The minimum investment required is $1,000
  • After age 70 1/2 you are required to begin mandatory distributions
  • Must be at least five years old to open an IRA
  • You cannot transfer assets between IRAs

Roth IRA Pros:

  • Contributions are exempt from taxes
  • Earnings can grow tax-free
  • Minimum distribution not required
  • There are only a few investment options available: stocks, bonds and mutual funds.
  • There is no maximum allowed contribution
  • Transfer assets between IRAs is possible without restrictions
  • To open an IRA, you must be 55 years old or older

It is important to understand that not all companies offer the exact same IRAs when opening a new IRA. Some companies provide the choice of a Roth IRA as well as a traditional IRA. Some will let you combine them. There are different requirements for different types. A Roth IRA does not have a minimum investment requirement. Traditional IRAs require a minimum of $1,000.

The Bottom Line

It is important to decide whether you want taxes now or later when you choose an IRA. A traditional IRA may be the right choice if you retire within ten years. A Roth IRA might be better suited to you. Either way, it’s always a good idea to consult a professional about your retirement plans. Someone who understands the market will be able to recommend the best options.


By: Donny Gamble
Title: Roth IRA Calculator
Sourced From:
Published Date: Sun, 13 Nov 2022 19:44:57 +0000

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