A Roth IRA is a retirement account funded with after-tax money. Your investments grow tax-free, and qualified withdrawals in retirement are also tax-free once you meet the age and holding-period requirements.

Contribution limits are set by the IRS and can change over time. The calculator lets you estimate your savings using your planned annual contribution, regardless of the current limit.

Many long-term investors use 7% as a reasonable inflation-adjusted estimate. Conservative portfolios may average around 5%, while more aggressive stock-heavy portfolios may target 9% or more, though actual returns are never guaranteed.

You can generally withdraw your original contributions at any time without tax or penalty. Investment earnings may be subject to taxes and penalties if withdrawn before meeting IRS qualification rules.

Some higher-income earners use a Backdoor Roth IRA strategy by contributing to a Traditional IRA and then converting it to a Roth IRA. Consider consulting a tax professional before using this approach.

Both offer valuable retirement benefits. Many people contribute enough to a 401(k) to receive the full employer match first, then invest additional retirement savings in a Roth IRA if eligible.