Roth IRA Calculator 2026 – Eligibility, Contribution Limits & Tax-Free Retirement Growth
A Roth IRA remains one of the most powerful retirement planning tools available to individuals in the United States. Offering tax-free growth and tax-free withdrawals in retirement, the Roth IRA is widely regarded as an essential component of a long-term wealth strategy. The Roth IRA Calculator 2026 on MyTimeCalculator helps you determine whether you qualify, how much you can contribute based on IRS rules for the 2026 tax year, and how your Roth IRA could grow between now and retirement under various investment return assumptions.
Whether you are a first-time investor trying to understand MAGI limits and phase-out rules or an experienced saver optimizing your long-term tax planning, this calculator provides instant clarity. It covers both eligibility and growth projection, enabling you to estimate your total tax-free retirement income using a conservative withdrawal strategy.
What Is a Roth IRA?
A Roth IRA is an individual retirement account that allows your contributions to grow tax-free. Withdrawals in retirement are also tax-free, provided certain rules are met. Unlike traditional IRAs, Roth IRAs do not provide an upfront tax deduction, but they offer unmatched flexibility in retirement because distributions are not taxed, not required, and do not affect Medicare premiums or Social Security taxation.
Key features of a Roth IRA include:
- Tax-free growth: Investment gains, dividends, and interest accumulate without tax.
- Tax-free withdrawals: Qualified withdrawals after age 59½ are entirely tax-free.
- No required minimum distributions (RMDs): Unlike traditional IRAs, Roth IRAs have no forced withdrawals.
- Flexible access: Contributions (not earnings) can be withdrawn anytime without taxes or penalties.
- Income-based eligibility: Contributions are limited based on MAGI and filing status.
Roth IRA Contribution Limits for 2026
For the 2026 tax year, the IRS allows the following annual contribution limits:
- $7,000 for individuals under age 50.
- $8,000 for individuals age 50 or older (including $1,000 catch-up contribution).
You cannot contribute more than your earned income for the year. Earned income includes wages, salary, bonuses, self-employment income, and commissions. It does not include investment income, pensions, rental income, or other passive earnings.
2026 Roth IRA Income Limits (MAGI Phase-Out Ranges)
Eligibility for a Roth IRA contribution is determined by your modified adjusted gross income (MAGI) and your tax filing status. For 2026:
- Single / Head of Household: Full contribution allowed below $150,000; phased-out between $150,000 and $165,000; not eligible at $165,000 or above.
- Married Filing Jointly: Full contribution allowed below $236,000; phased-out between $236,000 and $246,000; not eligible at $246,000 or above.
- Married Filing Separately: Contribution allowed only below $10,000; eliminated completely at $10,000 or above.
If your income falls inside the phase-out range, your maximum allowed Roth IRA contribution is reduced proportionally. The calculator automatically applies these reduction formulas based on IRS rules.
Why Roth IRA Eligibility Matters
Unlike many other tax-advantaged accounts, a Roth IRA is subject to strict income limitations. Many people mistakenly assume they cannot contribute simply because their income is too high, when in reality they may still qualify for a partial contribution. Others may unintentionally make excess contributions, triggering IRS penalties of 6% per year until the excess is removed.
The Roth IRA Calculator 2026 eliminates this confusion by:
- Determining whether you qualify for a full, partial, or no contribution.
- Applying phase-out calculations automatically.
- Comparing your planned contribution with your allowed contribution.
- Calculating any excess you may need to remove.
Earned Income Requirement
You can only contribute up to the lesser of:
- Your annual earned income, or
- Your IRS Roth IRA contribution limit.
For example, if you earn $5,000 in 2026, your maximum Roth IRA contribution is $5,000 even if the IRS allows $7,000.
How MAGI Is Calculated for Roth IRA Eligibility
MAGI (Modified Adjusted Gross Income) is calculated by taking your adjusted gross income (AGI) and adding back certain deductions such as:
- Foreign earned income exclusion
- Tax-exempt interest
- Student loan interest deduction
- Tuition and fees deduction
The calculator simplifies this by allowing you to enter your MAGI directly. You can find your AGI on your tax return and estimate your MAGI using IRS worksheets or tax software.
Understanding the Roth IRA Phase-Out Formula
If your income falls within the phase-out range, the IRS reduces your contribution limit proportionally. The formula used in this calculator follows the IRS reduction method:
For example, if you are single with a MAGI of $157,500:
- Your income is $7,500 into the $15,000 phase-out range.
- You have $7,500 left in the range.
- You are eligible for 50% of the base limit (7,500 ÷ 15,000).
The calculator performs this automatically based on your filing status and MAGI.
How the Roth IRA Calculator Determines Eligibility
When you enter your age, filing status, MAGI, earned income, and planned contribution, the tool calculates:
- Your base contribution limit ($7,000 or $8,000).
- The maximum contribution allowed after adjusting for income.
- Your adjusted planned contribution (capped at the maximum allowed).
- Your remaining contribution room.
- Any excess contributions that may trigger IRS penalties.
This ensures you never accidentally exceed the IRS limit.
Roth IRA Growth Projection Explained
The second tab of the calculator projects how your Roth IRA could grow over time. Since Roth IRA withdrawals are tax-free in retirement, growth projections offer a realistic picture of your future purchasing power.
The calculator uses the future value formula for investments with recurring contributions:
Where:
- P = Current Roth IRA balance
- PMT = Annual contribution
- r = Annual return rate
- n = Years until retirement
Why Roth IRA Growth Is So Powerful
The combination of tax-free compounding and consistent annual contributions creates extraordinary long-term growth. Even modest contributions can turn into significant balances over time thanks to compounding.
For example:
- Contributing $7,000 per year at 7% annual return results in ~ $1 million over 35 years.
- Contributing $8,000 per year (age 50+) at 7% return for 20 years grows to ~ $350,000.
The calculator shows:
- Your projected final Roth IRA balance.
- Total contributions over time.
- Total tax-free investment gains.
- Estimated yearly and monthly tax-free retirement income using a 4% safe withdrawal rate.
Using the 4% Rule for Roth IRA Income Estimates
A common retirement planning guideline is the “4% rule,” which suggests you can safely withdraw 4% of your portfolio each year without running out of money in a typical 30-year retirement.
Because Roth IRA withdrawals are tax-free, this estimate directly represents your net income. The calculator displays:
- Your estimated annual tax-free income.
- Your estimated monthly tax-free income.
For example, a $1,000,000 Roth IRA could allow approximately $40,000 per year of tax-free withdrawals.
Roth IRA vs Traditional IRA
Both Roth and traditional IRAs offer valuable tax advantages, but they differ in when the tax benefit applies:
| Feature | Roth IRA | Traditional IRA |
|---|---|---|
| Tax Benefit | Tax-free withdrawals | Tax-deductible contributions |
| Withdrawals in Retirement | Tax-free | Taxed as ordinary income |
| Income Limits | Yes | Yes (for deduction) |
| RMDs Required? | No | Yes, starting at age 73 |
Common Roth IRA Myths
- “I earn too much for a Roth IRA.” Not necessarily—many high earners still qualify for partial contributions.
- “Roth IRAs are only for young people.” They benefit investors of all ages, especially those expecting higher future tax rates.
- “Roth IRAs don’t allow rollovers.” You can roll over from traditional accounts via a Roth conversion.
- “I can’t withdraw contributions.” Contributions are accessible anytime tax- and penalty-free.
Benefits of Using This Roth IRA Calculator
- Instant eligibility determination based on 2026 IRS rules.
- Automatic phase-out calculations based on MAGI.
- Accurate contribution limit adjustments.
- Detailed growth projections for long-term planning.
- Clear picture of tax-free income in retirement.
- Suitable for beginners and advanced planners.
Summary: Plan Your Tax-Free Retirement with Confidence
A Roth IRA is one of the most valuable retirement accounts available, offering unmatched tax benefits and long-term flexibility. Whether you are evaluating eligibility, optimizing contributions, or projecting your future tax-free income, the Roth IRA Calculator 2026 gives you the insight needed to make informed decisions.
Use the calculator regularly as your income, investment strategy, and retirement goals evolve. Understanding your eligibility and growth potential today ensures a stronger, tax-free financial future.
Roth IRA Calculator FAQs
Frequently Asked Questions About Roth IRAs (2026)
Quick answers to the most common questions about eligibility, contribution limits, and tax-free retirement growth.
Eligibility depends on your MAGI and filing status. If your income falls below the IRS phase-out range for 2026, you may contribute the full limit. If your income is within the phase-out range, your contribution is reduced proportionally.
The limit is $7,000 for those under 50 and $8,000 for those age 50 or older. You cannot contribute more than your earned income.
MAGI starts with your AGI and adds back certain deductions such as foreign income exclusion and student loan interest deductions.
You may only contribute if you have earned income. Social Security, pensions, and investment income do not qualify as earned income.
Yes. Contributions (but not earnings) can be withdrawn anytime tax- and penalty-free.
No. Roth IRAs do not require RMDs, making them excellent for long-term tax planning and inheritance strategies.
Excess contributions are subject to a 6% IRS penalty each year until the excess is removed or recharacterized.
Many planners use 6–8% long-term annual return for diversified portfolios. The calculator allows you to test any rate.
Use it to determine your 2026 contribution eligibility, calculate your maximum allowed contribution, and project your tax-free Roth IRA balance at retirement using estimated growth and the 4% income rule.