401(k), IRA & Roth
A Roth IRA calculator that shows what tax-free growth is worth
A Roth IRA calculator that compares the same after-tax contributions in a Roth and in a taxable account, so clients see the value of tax-free growth over their own time frame.
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How much is a Roth IRA's tax-free growth worth?
Compare the same after-tax contributions growing in a Roth, untaxed, with a taxable account whose gains are taxed each year. The difference, the Roth advantage, grows with time, return and tax rate. Qualified Roth withdrawals are tax-free. The 2026 limit is $7,5002026 · IRS, or $8,6002026 · IRS at 50 and over.
New Year, and for young earners, the first real job
Roth IRAs are promoted heavily to young earners and parents of working teenagers. In January, people setting goals ask whether opening one is worth it. Parents ask for their children with summer job income. The question is simple; the answer depends on time and tax rates.
What the client types into a search box
“is a roth ira worth it”
How a client works through it
Enter the annual contribution
The after-tax amount the client plans to add each year.
Set time and return
Years to grow and the expected annual return.
Enter the tax rate on gains
The rate a taxable account's gains would face each year.
Compare
Roth value, taxable account value and the Roth advantage.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Annual contribution, years to grow and the tax rate on gains show age and income. Long horizons point to young savers; contributions at the limit with a high tax rate suggest a client who may exceed Roth income limits and need a backdoor strategy.
What is the Roth advantage?
Roth IRA Value grows without tax. Taxable Account Value grows with gains taxed each year at the rate entered. Roth Advantage is the difference, which compounds over time. Tax-Free Growth shows the growth that will never be taxed.
The comparison is fair because both accounts receive the same after-tax dollars. It doesn't compare a Roth with a deductible traditional IRA; that is a different question.
Results shown: Roth IRA Value · Taxable Account Value · Roth Advantage · Total Contributed · Tax-Free Growth.
Who benefits from a Roth IRA calculator on a firm's site?
Advisers gain young prospects early in their careers, when relationships can last decades. CPA firms help families: a teenager with earned income can fund a Roth, and the firm that prepares the child's first return is part of that.
The calculator also helps explain why Roth eligibility matters for higher earners, which leads to backdoor Roth discussions.
Follow-ups this request opens
- Confirm Roth eligibility against income limits
- Set up a backdoor Roth for high earners
- Open a Roth for a teenager with earned income
- Coordinate Roth IRA and Roth 401(k) contributions
What this calculator leaves out
- Income limits and contribution limits are not enforced.
- The taxable account is taxed annually at one rate; real portfolios differ.
- Five-year and age rules for qualified withdrawals are not modeled.
- Constant return.
Platform disclaimer shown under the calculator: Estimates only. The taxable account is modeled with annual gains taxed at your rate; Roth grows tax-free on after-tax contributions. Contribution limits, income limits and tax law are not enforced. Consult a tax professional.
Compliance note for firms
Recommending a Roth contribution or a backdoor strategy is tax advice and depends on income and existing pre-tax IRA balances (the pro-rata rule). Advisers presenting growth comparisons should keep the return client-controlled and disclose the assumptions.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
2026 figures this page relies on
| Figure | Value | Tax year | Source |
|---|---|---|---|
| IRA contribution limit (all IRAs combined) | $7,500 | 2026 | IRS |
| IRA limit including age 50+ catch-up | $8,600 | 2026 | IRS |
The same values drive the calculator. Full list on the 2026 figures page.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Roth IRA
- An individual retirement account funded with after-tax money. Contributions are not deductible, but qualified withdrawals of both contributions and earnings are tax-free. This calculator compares a Roth IRA with an ordinary taxable account receiving the same contributions, to show the value of never paying tax on the growth.
- IRA contribution limit
- The annual maximum you can put into all your IRAs combined: $7,500 for 2026, or $8,600 if you are 50 or older (IRS, 2026). The limit is shared between traditional and Roth IRAs. This calculator does not enforce it, so a larger contribution entered here will overstate what the account can legally hold.
- Roth advantage
- The Roth IRA’s ending value minus the taxable account’s ending value, with the same contributions and return. It measures the benefit of tax-free compounding under your assumptions. It grows with the number of years, the return and your tax rate on gains, and it assumes the Roth withdrawals will be qualified.
- Tax drag
- The reduction in growth caused by paying tax on investment gains each year. In the taxable account here, your tax rate on gains is applied as a drag on the annual return, so less stays invested to compound. Over decades, the widening gap between the taxed and untaxed balances is the Roth advantage.
- Tax-free growth
- The earnings in the Roth account: its ending value minus total contributions. Because qualified withdrawals are tax-free, this entire amount can be spent without income tax. In a taxable account, part of the same growth would have gone to taxes along the way, which is what this result helps you see.
- Qualified withdrawal
- A Roth IRA withdrawal of earnings that is free of tax and penalty because it meets IRS conditions on your age and on how long the account has been open. Your own contributions can generally be taken back at any time without tax. Withdrawing earnings before meeting the conditions may trigger income tax and an early-withdrawal penalty.
In our glossary: Roth conversion · Tax-deferred
Roth IRA calculator: questions from firms and clients
What is the Roth IRA limit for 2026?
$7,5002026 · IRS, or $8,6002026 · IRS at 50 and over, shared with traditional IRAs.
Are there income limits?
Yes, Roth contributions phase out at higher incomes. The calculator doesn't check them; the firm can.
Are Roth withdrawals always tax-free?
Qualified withdrawals are. Contributions can come out tax-free anytime; earnings require age and five-year conditions.
Can a teenager have a Roth IRA?
Yes, with earned income, up to the lesser of earned income or the limit.
What is a backdoor Roth?
A nondeductible traditional IRA contribution converted to Roth, used by people above the income limits. Existing pre-tax IRA balances affect the tax, so get advice first.
Does the Roth have RMDs?
Not for the original owner.
Roth or traditional?
See the Roth vs. traditional calculator.
Which plan includes it?
Network. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Clients who ask this usually ask next
Roth vs. Traditional
should I choose roth or traditional 401k
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Traditional IRA
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All “401(k), IRA & Roth” calculators · Everything in Retirement
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