Roth IRA basics
A Roth IRA is an individual retirement account funded with after-tax money. Investments grow tax-free, and qualified withdrawals after age 59½ are tax-free too. You can open one at any brokerage, separate from a workplace 401(k).
2026 limits
- $7,500 a year, or $8,600 from age 50.
- The limit phases out with income: single filers between $153,000 and $168,000 of modified AGI, married couples filing jointly between $242,000 and $252,000.
Worked example
Contributing $7,500 a year from age 30 to 60 at a 7% return grows to about $708,456: $225,000 contributed and $483,456 of tax-free growth.
A single filer with $160,000 of MAGI is in the phase-out range and can contribute only $4,000 in 2026.
Roth or traditional?
Roth suits people who expect a higher tax rate in retirement than today, and young savers with decades of tax-free growth ahead.
How this works
The page finds your 2026 limit by age, reduces it if your income is in the phase-out range (rounded up to the next $10, at least $200), and caps your planned contribution at it. It then adds that contribution and a year of growth for each year until retirement. Figures are nominal and held at 2026 limits.
Frequently asked
What is the Roth IRA limit for 2026?
$7,500, or $8,600 if you are 50 or older.
What are the 2026 income limits?
Phase-out from $153,000 to $168,000 for single filers and $242,000 to $252,000 for married filing jointly.
When can I withdraw tax-free?
After age 59½ and five years after your first Roth contribution; contributions themselves can be withdrawn anytime.
Can I have a Roth IRA and a 401(k)?
Yes. Their limits are separate.
Sources
- IRS — 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- Investor.gov (U.S. SEC) — Compound interest calculator and method
Reviewed Oct 17, 2026 · test vectors fixtures/calculators/finance/us/roth-ira-calculator/