A Roth IRA is a tax-advantaged individual retirement account. Contributions are made with after-tax money, but all growth and qualified withdrawals in retirement are 100% tax-free. The 2024 contribution limit is $7,000/year ($8,000 if 50+), subject to income limits.

What are Roth IRA income limits for 2024?

For 2024: Single filers can contribute the full amount up to $146,000 MAGI, with phase-out up to $161,000. Married filing jointly: full contribution up to $230,000 MAGI, phase-out to $240,000. Above these limits, you may use a Backdoor Roth IRA strategy.

When can I withdraw from a Roth IRA tax-free?

Roth IRA qualified withdrawals are tax-free and penalty-free if you are at least 59½ and the account has been open for at least 5 years. Contributions (not earnings) can always be withdrawn any time without tax or penalty.

Roth IRA vs. Traditional IRA: which is better?

Roth is generally better if you expect to be in a higher tax bracket in retirement. Traditional is better if you expect lower taxes in retirement (or want the deduction now). Both have the same $7,000 contribution limit. Many people contribute to both or use a mix of pre-tax and Roth accounts.

Does a Roth IRA have required minimum distributions?

No — Roth IRAs have no required minimum distributions (RMDs) during the owner's lifetime. This is a major advantage over Traditional IRAs and 401(k)s, which require RMDs starting at age 73. Roth funds can grow tax-free indefinitely and pass to heirs tax-free.

Roth IRA Calculator

Project your Roth IRA balance at retirement with tax-free growth. See total contributions, tax-free earnings, estimated monthly retirement income, and how the tax-free advantage compares to a taxable account.

Roth IRA Projection

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Why Roth IRA Growth Is Powerful

Unlike traditional retirement accounts, Roth IRA growth is never taxed. Every dollar of investment return stays entirely yours in retirement. At a 22% tax rate, a $1,000,000 Roth balance is worth $1,000,000 — the equivalent traditional account balance is worth only $780,000 after taxes.

2025 Contribution Limits

Under age 50: $7,000/year maximum
Age 50 or older: $8,000/year (catch-up contribution)
Income phase-out (single): $150,000–$165,000 MAGI
Income phase-out (married filing jointly): $236,000–$246,000 MAGI

Roth IRA Advantages

Tax-free growth and qualified withdrawals
No required minimum distributions (RMDs)
Contributions can be withdrawn any time, penalty-free
Can contribute at any age (no maximum age limit)
Excellent estate planning tool — pass tax-free to heirs

Frequently Asked Questions

What is the deadline to contribute to a Roth IRA?

You can contribute to a Roth IRA for a given tax year up until the tax filing deadline — typically April 15 of the following year. This means you can make 2025 Roth IRA contributions as late as April 15, 2026. Extensions for filing don't extend the contribution deadline.

Can I contribute to both a 401(k) and a Roth IRA?

Yes — these are separate contribution limits. In 2025, you can contribute up to $23,500 to a 401(k) and up to $7,000 to a Roth IRA (if your income qualifies), for a combined $30,500 in tax-advantaged retirement savings. Maxing both is one of the most powerful wealth-building strategies available.

What if my income is too high for a Roth IRA?

If your MAGI exceeds the phase-out range, you can use the "backdoor Roth IRA" strategy: contribute to a Traditional IRA (non-deductible) then immediately convert it to a Roth. This is legal and commonly used by high-income earners. Consult a tax advisor to ensure you handle the pro-rata rule correctly if you have existing pre-tax IRA balances.

When can I withdraw Roth IRA earnings tax-free?

Roth IRA earnings can be withdrawn tax-free and penalty-free after age 59½, provided the account has been open for at least 5 years. Withdrawing earnings before meeting both conditions may trigger income tax and a 10% early withdrawal penalty. Contributions (not earnings) can be withdrawn at any time with no tax or penalty.