Retirement

Roth IRA calculator

Calculate your earnings and more

Creating a Roth IRA can make a big difference in retirement savings. There is no tax deduction for contributions made to a Roth IRA, however all future earnings are sheltered from taxes. The Roth IRA provides truly tax-free growth. Use our Roth IRA calculator to determine how much can be saved for retirement.

This calculator requires a Java-enabled browser. To download the plugin, click here.

Retirement

This Financial Calculator requires SUN's Java� Plug-in. If you see this message you will need to download SUN's Java� Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing �Install ActiveX Control�.

Get the Java� Plug-in!

For more information about this Plug-in please visit: SUN's Java� Plug-in
For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions

Annual contribution: The amount you will contribute to your ROTH IRA each year. This calculator assumes that you make your contribution at the beginning of each year. From 2008 through 2010, the maximum annual IRA contribution is $5,000 per individual. It is important to note that this is the maximum total contributed to all of your IRA accounts. The contribution limit increases with inflation in $500 increments. An annual change to the contribution limit only occurs if the cumulative effect of inflation since the last adjustment is $500 or more.
If you are 50 or older you can make an additional "catch-up" contribution of $1,000. The "catch-up" contribution amount of $1,000 remains unchanged for 2010. In order to qualify for the "catch-up" contribution, you must turn 50 by the end of the year in which you are making the contribution.
It is important to note that Roth IRA contributions are limited for higher incomes. If your income falls in a "phase-out" range you are allowed only a prorated Roth IRA contribution. If your income exceeds the phase-out range, you do not qualify for any Roth IRA contribution. For the purposes of this calculator, we assume that your income does not limit your ability to contribute to a Roth IRA. The table below summarizes the income "phase-out" ranges for Roth IRAs.

Starting in 2010 high income individuals will have the option to make non-deductible Traditional IRA contributions and then immediately convert them to a Roth IRA. This can effectively eliminate the income phase-out for Roth IRA contributions. This loop-hole for Roth IRA contributions may or may not be available in later years depending on future changes to the IRA law.

Tax filing status	2010 Income Phase-Out Range
Married filing jointly or Head of household	$167,000 to $177,000
Single	$105,000 to $120,000
Married filing separately	$0 to $10,000

Expected rate of return: The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
Current age: Your current age.
Age of retirement: Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your IRA. So if you retire at age 65, your last contribution is assumed to have happened when you were actually 64.
Marginal tax rate: The marginal tax rate you expect to pay on your taxable investments.
Roth total at retirement: Total value in your Roth IRA at your retirement.
Total taxable savings: The total amount you would have accumulated by retirement in a taxable savings account.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Compare CDs & Investment Rates

1 Yr CD average
0.62%

About our rates

About this index

Overnight Averages

Product	Rate	+/-	Last week
30 yr fixed	3.60%		3.52%
15 yr fixed	2.74%		2.71%
5/1 ARM	2.54%		2.57%

View rates in your area:

Product	Rate	+/-	Last week
30K HELOC	5.21%		5.22%
30K Home Equity Loan	6.11%		6.14%
50K HELOC	4.76%		4.79%

View rates in your area:

Product	Rate	+/-	Last week
48 Mo Used Car	2.93%		3.10%
48 Mo New Car	2.45%		2.45%
36 Mo Used Car	2.88%		2.93%

View rates in your area:

Product	Yield	+/-	Last week
6 Mo CD	0.41%		0.43%
1 Yr CD	0.62%		0.63%
5 Yr CD	1.22%		1.24%

Compare rates:

Product	Rate
Low Interest Cards	11.01%
Balance Transfer Cards	15.92%
All Variable	15.24%

Compare rates:

Partner Center

Bankrate's Free Content Center

Click here to visit the content center.

Rather watch TV than CD rates?

We'll notify you when rates hit your target.

Subscribe:RSS Feeds

Advertising Disclosure: Bankrate.com is an independent, advertising-supported comparison service. Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.