Project tax-free Roth IRA growth and see how much you'll save in retirement taxes. Updated with 2026 contribution limits ($7,500) and income phase-out thresholds.
Tax-free growth projection with 2026 contribution limits
The Roth IRA growth calculator shows what tax-free compound growth looks like over 30+ years. Starting at age 30, contributing the 2026 maximum of $7,500 annually, and earning 7% return per year, you'd accumulate roughly $885,000 by age 65. Every dollar of that growth — potentially $600,000+ in investment gains — comes out completely tax-free in retirement. Compare that to the same money in a Traditional IRA: the balance looks identical while it grows, but at a 22% tax rate on withdrawals, you'd lose over $130,000 of that balance to the IRS when you start drawing income.
The Roth's tax-free withdrawal advantage compounds on top of itself, because you also keep what you would have paid in taxes invested and growing. Younger workers are ideal Roth candidates: they're often in lower tax brackets now (22% or below), so the tax cost of contributing is lower, while retirement decades away allows maximum tax-free compounding. Workers in their 50s with strong incomes should model both scenarios — the Roth still often wins if they expect to stay in the 22%+ bracket in retirement, especially given Roth's estate planning advantage of leaving tax-free money to heirs.
Every dollar earned inside a Roth IRA — dividends, capital gains, interest — compounds without any annual tax drag. Over 30 years at 7%, a $100,000 Roth balance grows to $761,000 with zero tax owed on the gain at withdrawal.
Contribution limit is $7,500/year for those under 50 and the same $7,500 for 50+ (the catch-up is included in the base limit for 2026). Contributions can be made until Tax Day (typically April 15) for the prior year.
Single filers earning $150,000–$165,000 and married filers earning $236,000–$246,000 face reduced Roth IRA contribution limits in 2026. Above those ranges, the backdoor Roth conversion remains a widely used alternative strategy.
Roth wins if your retirement tax rate is higher than your current rate. Traditional wins if your current rate is higher. When uncertain, splitting contributions between both accounts hedges against future tax rate changes effectively.