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Roth IRA Calculator
This calculator estimates the balances of Roth IRA savings and compares them with a regular taxable account.
Understanding Your Roth IRA
A Roth IRA is a special retirement account where you contribute with after-tax dollars. Unlike a traditional IRA or 401(k), your money grows completely tax-free, and qualified withdrawals in retirement are also tax-free. It offers incredible flexibility and tax advantages, especially for those who expect to be in a higher tax bracket in the future.
This Roth IRA Calculator is designed to show you that powerful advantage in action. It compares how your savings would grow in a Roth IRA versus a standard taxable brokerage account, highlighting the impact of tax-free growth over time.
- Tax-Free Withdrawals: This is the main attraction. All your investment earnings can be withdrawn tax-free in retirement (after age 59½).
- Contribution Flexibility: You can withdraw your original contributions (not earnings) at any time, for any reason, without tax or penalty. This makes it a flexible savings tool.
- No Required Minimum Distributions (RMDs): Unlike 401(k)s and traditional IRAs, you are never forced to take money out, allowing your funds to grow for your entire lifetime.