Saving for retirement
Contributions taxed now; growth and withdrawals kept whole later.
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Benefits of a Roth IRA
A Roth IRA takes the opposite trade of a traditional IRA. You contribute after-tax dollars today, and qualified withdrawals in retirement come out tax-free. For savers who expect to be in a similar or higher tax bracket later in life, the arithmetic often runs in the Roth's favor. The calculator below shows how a set annual contribution compounds over your years of saving and what the balance and withdrawal look like once you retire.
How to use the calculator
Enter four inputs:
Tax bracket during contribution years. The federal marginal rate that applies to your current income. If you're not sure, the IRS publishes brackets by filing status.
Annual contribution. What you plan to put in each year. For 2026, the IRS limit is $7,500 if you're under 50 and $8,600 if you're 50 or older, subject to income-based phaseouts for Roth eligibility.
Years of contribution. The number of years between now and your planned retirement date.
Expected rate of return. A reasonable long-term average for the mix of investments held inside the IRA.
The output shows the projected account balance at retirement and an estimated annual withdrawal. Because Roth withdrawals in retirement are generally tax-free, the withdrawal figure is what you keep.
What a Roth IRA does
Contributions go in after tax and receive no current-year deduction. Investments grow tax-free inside the account. Qualified withdrawals in retirement, meaning distributions taken after age 59½ from an account that has been open at least five years, come out free of federal income tax. Roth IRAs have no required minimum distributions during the account owner's lifetime, which gives more flexibility over when and whether to draw down the balance. Eligibility to contribute directly phases out at higher income levels, and a backdoor Roth conversion is a separate mechanic worth discussing with an advisor.
When a Roth IRA fits
A Roth IRA tends to favor savers whose marginal tax rate today is the same as or lower than what they expect to face in retirement. Younger earners in lower brackets often see the strongest case, since decades of compounding happen entirely tax-free. Roth accounts also give retirees a source of withdrawals that does not add to taxable income, which can matter for Medicare premiums, Social Security taxation, and Roth conversion planning in later years. If you want to compare against pre-tax contributions, use the Traditional IRA calculator.
Talk to an advisor
The calculator is a planning tool, not a recommendation. Roth eligibility, conversion timing, coordination with a workplace Roth 401(k), and the order of withdrawals across taxable, pre-tax, and Roth accounts all depend on your full picture. An Arrowroot Wealth Advisor can walk through the numbers with you.
Disclosure
This calculator is provided for educational purposes only and produces hypothetical illustrations based solely on the inputs and assumptions you enter. Results are not a guarantee, projection, or prediction of actual investment performance, and actual results will vary. The calculator does not reflect advisory fees, investment expenses, or every factor relevant to your situation. Contribution limits, income phaseouts, deduction rules, and tax rates are subject to change. This is not tax, investment, or legal advice. Consult your advisor and tax professional before acting.
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