Roth IRA Future Value Calculator

Gordon J Maier & Company, LLP
	Newsletter

This calculator will estimate and chart the future value of a Roth IRA, and compare it to the estimated future value of a similar taxable investment, at the time of your retirement. The calculation assumes that the same annual contribution is made at the end of each year until retirement. Earnings are compounded annually. All income, dividends, and capital gains distributions are reinvested, and any resulting taxes on the taxable investment are paid with funds from the account. Investment fees and expenses, which are generally different for tax-advantaged and taxable investments, are not deducted.

Current Roth IRA balance (Contributions and investment earnings)

Annual contribution

IRA contribution limits, including "catch-up" contributions for individuals age 50 or over, are summarized in the table below

Years until retirement

Years

Estimated annual rate of return

Current income tax rate

Contributions to a Roth IRA are not tax deductible. Depending on an individual's tax filing status and modified adjusted gross income, allowable contributions to a Roth IRA may be less than the amounts shown below.

Contribution limits:

Tax year beginning in	Contribution limits (under age 50)	Additional catch-up contribution limits (age 50 or over)
2023	$6,500	$1,000
2024	$7,000	$1,000

To qualify for tax-free and penalty-free withdrawal of earnings, a Roth IRA must satisfy a five-year holding period requirement and the distribution must take place after age 59½, or due to death, disability, or a first-time home purchase (up to $10,000 lifetime limit). Nonqualified withdrawals of earnings may be subject to income tax and possibly a 10% penalty tax. Special rules apply to amounts converted from a traditional IRA to a Roth IRA.