Tax-free retirement modeling with Monte Carlo projections, FIRE analysis, and strategy comparison.
Your Details
Account Details
Forecasts freeze the selected policy year, MAGI and compensation. Seeded simulations use 1,000 monthly normal-return paths, a −100% floor, end-month deposits and no fees; results are conditional scenarios.
$
yrs
Must be less than retirement age.
yrs
Contributions
$
Age 50+ catch-up: you can contribute up to $667/mo ($8,000/yr).
Eligibility
$
Growth Assumptions
%
High return assumption — consider 7–8% for realistic planning.
%
Used for Monte Carlo simulation uncertainty.
%
Goal
$
$
Roth IRA Dashboard
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Income Exceeds Roth IRA Limit
Your MAGI exceeds the IRS phase-out range. Direct contributions are not allowed, but the Backdoor Roth strategy may be available.
Projected balance at age 65
$0
$0/moQualified-withdrawal income illustration (4% rule)
Tax-free if qualified
You Contributed
$0
Investment Growth
$0
Tax Savings vs Taxable
$0
Years Investing
0
Goal Probability
—
Monte Carlo
Monthly Income
$0
Balance$0
+
Contrib$0
+
Growth$0
=
Total$0
Conditional percentile details
p10, p50 and p90 are ranked outcomes of the same seeded model, not confidence in a personal forecast.
Year
Age
Contributed
Growth
Balance
Infl. Adj.
%
%
$/mo
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Calculate Tab 1 first
Enter your details in the Growth Projector tab to see the comparison.
Roth IRA
After-Tax
Balance at Retirement—
After-Tax Value—
Monthly Income (Tax-Free)—
Income tax deduction (annual)—
Traditional IRA
Pre-Tax
Balance at Retirement—
After-Tax Value—
Monthly Income (After Tax)—
Tax Deduction Today (annual)—
Break-Even Retirement Tax Rate
—
0% tax rate40%
The modeled threshold includes tax-deduction reinvestment and the stated initial balances.
After-Tax Wealth Over Time
Feature
Roth IRA
Traditional IRA
Contribution tax treatment
After-tax (no deduction)
Pre-tax (deductible)
Withdrawals in retirement
Qualified distributions tax-free
Taxed as ordinary income
Income limits (2026)
$153K–$168K (single phase-out)
None (deductibility may be limited)
Required Minimum Distributions
None (owner's lifetime)
Depends on birth cohort and account rules
Early principal access
Contributions anytime, no penalty
10% penalty + taxes before 59½
Best for
Currently in a lower tax bracket
Currently in a higher tax bracket
* Reinvesting the modeled deduction gives equal household cash cost for new deposits. Full deductibility is assumed, not established by this comparison; opening balances have equal nominal amounts, with historical funding taxes excluded.
🎯 Goal Seeker
$/mo
$/mo
Required Monthly Contribution—
Currently Contributing—
Monthly Gap—
Roth IRA Goal Balance—
🔥 FIRE Calculator
FIRE Age
—
Years Until FIRE
—
FIRE Number
—
Coast Balance Needed
—
Progress to FIRE Number0%
📊 Market Scenarios
Scenario
Return
Balance
Monthly Income
Calculate Tab 1 first
🎯 Retirement Readiness
—
⏳ Portfolio Longevity
$
Funds Last Until Age
—
Years of Income
—
Monthly Withdrawal
—
This gross withdrawal path assumes qualified Roth distributions. The balance alone does not establish the five-year, age or withdrawal-order conditions.
Contribution sensitivity
Monthly deposit and conditional retirement balances
Monthly deposit
Deterministic
Simulation p10
Simulation p50
Simulation p90
Trace withdrawal sources
Enter verified remaining history across your Roth IRAs. Include those accounts in Starting Balance. Leave the regular basis blank when unknown.
The timeline starts January1 of the entered tax year at the entered age. Ages are projection assumptions, not verified birthdays. The selected contribution-policy year is frozen independently.
Remaining conversions, by tax year
Ordinary living-owner illustration. Age 59½ and the first Roth five-tax-year period are distinct from each conversion clock. Inheritance, exceptions, corrections, rollovers and tax-return adjudication are outside this model. Exposure is an amount to review, not tax owed.
Constant gross monthly withdrawals after monthly growth at 5% effective annual return; no fees, inflation-linked withdrawals or new retirement deposits.
Withdrawal-source ledger
Withdrawal-source ledger
Year
Age
Regular contributions
Conversions
Earnings
Gross withdrawn
Remaining balance
Potentially taxable earnings
Potential early-tax exposure
🪜 Contribution Ladder
Monthly $
Annual $
% of Limit
Balance at Ret.
Monthly Income
vs Goal
Calculate Tab 1 first
Off by default. Original saved data stays untouched until Reset. Financial inputs enter a link only after you review and copy it.
What is a Roth IRA?
A Roth IRA is a retirement account funded with after-tax dollars. Regular contributions generally follow separate withdrawal ordering; tax-free earnings require both the five-tax-year period and age59½ or another qualifying condition. The 2026 contribution limit is $7,500 ($8,600 if age 50+).
3 min read4 steps5 terms2 examples5 FAQsFV=PV(1+i)^m+PMT*((1+i)^m−1)/i; i=(1+r)^(1/12)−1; m=12n; i=0:…
Choose the contribution-policy year, whole-year ages, starting balance and monthly or annual contribution. Enter other regular IRA deposits, MAGI and eligible compensation; blanks retain unknown eligibility.
2
Read the projection and uncertainty
Set effective annual return, inflation, volatility and seed. The deterministic balance is the reference. Use the year slider, percentile details and simulation toggle to inspect the conditional model.
3
Compare and plan withdrawals
Compare the stated household cash costs and elected deduction reinvestment. Check the IRA-limited goal and contribution sensitivity. Enter verified remaining aggregate Roth history for withdrawal-source tracing; otherwise source history remains unknown.
4
Review and export the scenario
Check the dollar basis, charts and ledgers. CSV retains inputs, seed, eligibility and nominal financial ledgers. Review finances before copying a Share or Embed link. Remember is optional; Print and Reset act on the current plan.
For end-month deposits, use the effective monthly rate(1+r)^(1/12)−1 and12n periods; zero return gives starting balance plus deposits. Qualified federal tax-free earnings require the separate Roth five-year and age/other qualification tests.
Apply the selected-year IRS worksheet to compensation-limited ordinary IRA capacity and MAGI, including its rounding rules. Other regular IRA deposits constrain the final room. Unknown MAGI or compensation remains unknown; conversions do not add ordinary room.
Use verified remaining aggregate history: regular contributions first, conversion tax years FIFO with taxable portions first, then earnings. Withdrawals cannot exceed available assets. Account qualification and each conversion clock are separate; exceptions and personal tax liability are not determined.
Reviewer: Calculover Editorial Review - Source and limitation review
Last reviewed: 2026-05-10
Last verified: 2026-10-18
Data effective: 2026-01-01
Methodology
Selected2025/2026 IRA policy coordinates MAGI, compensation and other regular IRA deposits; unverified facts remain unresolved. Deterministic effective-annual returns convert to monthly rates with end-month deposits. A seeded, cancelable1,000-trial worker uses the same normalized deposits; stale responses are ignored. Traditional comparison assumes full deductibility, optionally reinvests savings outside IRA and states equal-cash-cost limits. Qualified distribution conditions remain separate from account balance.
Assumption: Roth IRA relies on the values the user enters and does not independently verify income, balances, legal status, policy terms, or market quotes.
Assumption: Return, inflation, contribution, withdrawal, tax, and benefit assumptions remain constant unless the user changes them.
Assumption: Employer plan rules, IRS limits, Social Security rules, market returns, and sequence-of-return risk can materially change outcomes.
Limitations & guidance
Roth IRA does not provide investment, tax, Social Security, ERISA, or fiduciary advice and does not guarantee future balances or income.
Market volatility, inflation, contribution limits, plan rules, taxes, fees, and withdrawal timing can materially change retirement outcomes.
This calculator is provided for educational and illustrative purposes only. It is not financial, tax, or investment advice. IRS contribution limits, income phase-out thresholds, and tax rules are subject to annual COLA adjustments — always verify current limits at IRS.gov. Projections assume a constant rate of return and do not guarantee future results. Consult a qualified financial advisor or CPA before making retirement contribution decisions.
Professional guidance: Roth IRA is for retirement education only and is not investment, tax, legal, ERISA, or fiduciary advice. Review decisions with a qualified financial, tax, or plan professional.
Roth IRA ↗A retirement account funded with after-tax dollars where qualified withdrawals of both contributions and earnings are completely tax-free.
MAGI ↗Modified Adjusted Gross Income — your AGI with certain deductions added back, used to determine Roth IRA contribution eligibility.
Five-Year Rule ↗Roth IRA earnings are tax and penalty-free only if the account has been open at least 5 years and you are age 59½ or older.
Backdoor Roth ↗A strategy for high earners: contribute to a non-deductible Traditional IRA and then convert it to Roth to avoid income limits.
Roth Conversion ↗Moving money from a Traditional IRA or 401(k) to a Roth IRA — you pay income taxes on the converted amount now but get tax-free growth and withdrawals later.
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Scenarios
Real-World Examples
2 worked examples▸
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Alex
Young Professional Starting Early
Current age 28Current balance $15,000Monthly contribution $583/month ($6,996/year)Expected return 8%Retirement age 65
Effective annual return,$583 end-month deposits and frozen eligibility project about$1,730,732. This conditional balance requires valid contribution room and qualified-withdrawal tests; it is not a personal forecast.
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Sarah
Mid-Career Saver
Current age 42Current balance $100,000Monthly contribution $583Expected return 7%Retirement age 65
Effective annual return,$583 end-month deposits and frozen eligibility project about$859,740. This conditional balance requires valid contribution room and qualified-withdrawal tests; it is not a personal forecast.
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Reference
Cite This Calculator
APA & MLA▸
Use either format to cite this calculator in a paper, report, or resource list.
Roth IRA contributions use after-tax money. Federal tax-free earnings require qualified distributions; a large balance alone proves neither eligibility nor qualification. Compare dated contribution room, timing, taxes and household cash costs before comparing strategies.
Tax-Free Growth Changes Everything
▸
For equal new household cash cost, a Traditional contribution’s tax deduction cannot disappear from the comparison. This model can invest the assumed deduction in an outside account, then apply15% to its positive terminal gains. Full deductibility and qualified Roth withdrawals are assumptions; the main eligibility model does not establish Traditional deduction eligibility. Equal nominal opening balances exclude historical funding taxes. A flat current/future tax comparison is conditional, not an annual household return or a universal winner.
No RMDs: The Hidden Benefit
▸
Roth IRA owners do not take lifetime RMDs. Traditional IRA RMD start age depends on birth cohort, and employer plans have additional account/working rules. Beneficiaries have separate distribution obligations; inherited Roth earnings also require qualification. A five-tax-year Roth period and age59½ or another qualifying condition matter for tax-free earnings. Original contributions, conversions and earnings follow different withdrawal ordering and penalty rules. This dashboard does not reconstruct those account-level ledgers from a total balance.
When to Prioritize Roth Over Traditional
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Deterministic projections apply an effective annual return through an equivalent monthly rate with end-month deposits. The optional worker uses a fixed seed,1,000 monthly normal-return paths, a−100% floor and no fees. Zero-volatility paths match the deterministic ledger. Percentiles and goal frequency depend on the stated model, not a personal market forecast. Future policy, MAGI and compensation stay fixed; an IRA-only goal above modeled contribution capacity is reported infeasible. Actual returns and future laws can differ.
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Questions
Frequently Asked Questions
5 questions▸
What are the income limits for Roth IRA contributions in 2026?+
For2026, full MAGI room ends at$153,000 single/HOH or$242,000 joint; phaseout ends at$168,000 or$252,000. MFS living together uses$0–$10,000. Compensation and combined IRA deposits also constrain room. Conversion eligibility and tax require a separate analysis.
Does a conversion increase ordinary IRA contribution room?+
No. Conversions and regular contributions have different rules. This dashboard traces entered remaining conversion basis; it does not calculate conversion income tax or Form 8606 pro-rata tax. Use the separate conversion or backdoor calculator for that analysis.
How does the Roth IRA five-year rule work?+
Tax-free earnings require the Roth five-tax-year period and age59½ or another qualifying condition. Each taxable conversion has a separate five-year early-distribution penalty clock. Original contributions, conversions and earnings have distinct withdrawal ordering; total balance alone cannot prove qualification.
What do the simulated percentiles mean?+
The worker ranks 1,000 paths using the displayed seed and monthly normal-return model. p10, p50 and p90 are conditional outcomes, not personal forecasts or confidence guarantees. Zero volatility converges to the deterministic path under the same effective-rate and end-month timing.
How does withdrawal-source tracing work?+
Enter remaining regular contributions and taxable/nontaxable conversion layers across the Roth IRAs included in Starting Balance. Previous distributions must already be reflected. The model traces regular contributions, conversion years FIFO with taxable portions first, then earnings, capped by available assets. Separate age and tax-year assumptions do not adjudicate inheritance, exceptions or personal taxes.
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