What is the Roth IRA contribution limit for 2025?

The 2025 Roth IRA contribution limit is $7,000 per year, or $8,000 if you're age 50 or older. Income limits apply: single filers earning above $150,000 and married filing jointly above $236,000 have reduced contribution limits.

Is a Roth IRA better than a Traditional IRA?

It depends on your current vs. retirement tax bracket. Roth is better if you expect higher taxes in retirement — you pay tax now but withdraw tax-free. Traditional is better if your tax rate will drop in retirement. If unsure, Roth is often recommended for younger investors with decades of tax-free growth ahead.

When can I withdraw from my Roth IRA?

You can withdraw your contributions (not earnings) at any time, tax- and penalty-free. Earnings can be withdrawn tax-free after age 59½ if the account has been open for at least 5 years. Early withdrawal of earnings may incur a 10% penalty plus income tax.

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

Yes. 401(k) and IRA contribution limits are separate. You can contribute up to $23,500 to a 401(k) and up to $7,000 to a Roth IRA in 2025. This is a powerful combination — get your employer match in the 401(k), then max out your Roth IRA for tax-free growth.

Roth IRA Calculator 2025

See your tax-free growth — or compare Roth vs Traditional IRA outcomes.

Your Roth IRA

Current age

Retirement age

Current balance

Annual contribution

2025 limit: $7,000 ($8,000 if 50+)

Expected return

Historical avg: ~7% after inflation

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2025 Roth IRA limit: $7,000 ($8,000 if 50+). Income limits apply for direct contributions.

How to Use This Calculator

Growth tab

Enter your current age, current balance, annual contribution, and expected annual return. The calculator projects your Roth IRA balance at retirement, showing year-by-year growth. All withdrawals in retirement are tax-free — what you see is what you keep.

Roth vs Traditional tab

Enter your annual contribution, current tax bracket, and expected retirement tax bracket. The calculator compares the after-tax value of a Roth IRA versus a Traditional IRA over time — helping you decide which account type leaves you with more money in retirement.

Share your result

Every input is encoded in the URL. Click Share, send the link — they'll see your exact numbers. No re-entering, no screenshots.

The Formula

The Roth IRA growth projection uses the future value of a lump sum plus annuity formula — combining your existing balance with regular annual contributions compounded at a fixed rate.

FV = PV(1 + r)ⁿ + PMT × [(1 + r)ⁿ − 1] / r

Where FV = future value at retirement, PV = current balance, r = annual return rate, n = years until retirement, and PMT = annual contribution.

Roth vs Traditional comparison

Both accounts grow at the same rate before taxes. The difference is when you pay tax:

Roth after-tax value = FV (no tax on withdrawal)

Traditional after-tax value = FV − (FV × retirement tax rate)

A Roth wins when your retirement tax rate is higher than your current rate. A Traditional wins when your current rate is higher than your expected retirement rate.

Example

Emily — building a tax-free retirement nest egg

Emily is 30 years old with $10,000 in her Roth IRA. She plans to contribute $7,000 per year and expects a 7% average annual return. She wants to retire at 65.

Growth tab

Current age30

Retirement age65

Current balance$10,000

Annual contribution$7,000

Expected return7%

Years of growth35

Future value of $10K balance$106,765

Future value of contributions$966,398

Total at retirement$1,073,163

Tax on withdrawal$0 (Roth)

Emily's $255,000 in total contributions ($10K + $7K × 35 years) grows to over $1,073,000 — entirely tax-free in retirement. That's the power of compound growth inside a Roth IRA.

FAQ

What are the 2025 Roth IRA contribution limits? ▼

For 2025, you can contribute up to $7,000 per year if you're under 50, or $8,000 if you're 50 or older (the extra $1,000 is a catch-up contribution). These limits apply across all your IRAs combined — if you have both a Roth and Traditional IRA, your total contributions to both cannot exceed $7,000/$8,000.

Are there income limits for contributing to a Roth IRA? ▼

Yes. For 2025, single filers can make a full contribution if their modified adjusted gross income (MAGI) is under $150,000. Contributions phase out between $150,000 and $165,000, and you cannot contribute directly above $165,000. For married filing jointly, the phase-out range is $236,000 to $246,000. If you exceed these limits, you may still be able to use a backdoor Roth strategy.

Roth IRA vs Traditional IRA — which is better? ▼

It depends on your current tax rate versus your expected retirement tax rate. Roth IRA: you contribute after-tax dollars and withdraw tax-free in retirement — best if you expect to be in a higher tax bracket later. Traditional IRA: you may deduct contributions now and pay taxes on withdrawals in retirement — best if you expect a lower bracket later. If you're early in your career and in a low bracket, Roth usually wins. Use the "Roth vs Traditional" tab to compare with your actual numbers.

What is a backdoor Roth IRA? ▼

A backdoor Roth is a legal strategy for high earners who exceed the Roth IRA income limits. You contribute to a Traditional IRA (non-deductible), then convert it to a Roth IRA. There's no income limit on conversions. The key: if you have no existing pre-tax IRA balances, you'll owe little to no tax on the conversion. If you do have pre-tax IRA funds, the pro-rata rule applies — a portion of each conversion is taxable. Consult a tax advisor for your specific situation.

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