Estimate Tax Refund 2018 - 2019 Tax Season Tools & Guides

Roth IRA Contribution Calculator

Retirement Savings Contribution Credit, Contributing to your 401k, or other retirement plan, or a traditional or Roth IRA, may qualify you for the saver’s credit. You must meet the income limit requirement for your filing status in order to qualify.

Every year there is a maximum limit for individuals that applies to their Roth IRA contributions as dictated by the annual amount allowed for that particular year, or 100% of your employment compensation, whichever happens to be less.

Tax advantages related to Roth IRA investments can make a big difference in your retirement savings account.

There are no tax deduction to be gained for contributions made to a Roth IRA. However, any future earnings gained from your Roth IRA are sheltered from federal income taxes.

Planning for your retirement long before the time comes can benefit you greatly. Traditional IRA and Roth IRA savings accounts offer American tax payers some tax advantages that will help them grow more tax free cash for their retirement. Nice right!

Planning For The Future With Retirement Deductions

One of the most common and recommended ways to lower you tax bill is to increase contributions to your retirement fund. Making contributions to an Individual Retirement Account (IRA) not only facilitates a great way to boost saving for your retirement, but the investment in placing money into an IRA offers an opportunity to lower the total taxable income you have since it comes right off the top cutting your overall taxable income amount.

There are limits to this but in general the more you contribute to an IRA, the less of your income is subject to being taxed. The lower your taxable income is the less you will need  to pay in taxes, and the less you pay, the greater your refund will be. We all like to see less tax paying and bigger refunds, right?

Be careful to ensure your IRA contributions are made on time and under the right limited dollar amount to make sure they meet the IRA contribution guidelines. A maximum amount limit exists for how much can be applied to lowering taxable income.

Roth IRA Contribution Tax Calculator

Roth IRA Savings Tax Advantages

Roth IRA savings accounts can provide truly tax-free growth to help you beef up your retirement funds. You can also take tax-free qualified withdrawals. A distribution from your Roth account is federally tax-free and penalty-free provided that you have satisfied the five-year aging requirement and you cam meet one of the following conditions:

  • You are age 59½ or older
  • You're making a qualified first home purchase
  • In the event you have become deceased

For all you procrastinators like myself you can make catch-up contributions to a Roth IRA under special circumstances. Individuals that are of the age of 50 or older (during the calendar year of their contribution) may contribute an additional $1,000 to their IRA each year (based on 2018 - 2019 tax laws). Catch-up contributions must be paid by the standard April tax filing deadline for your tax return (not including any extensions).

Your Modified Adjusted Gross Income (MAGI) is used to determine you maximum annual IRA contribution limit. This limit includes contributions to all of your Roth IRA accounts and this can be calculated below. Use this calculator to determine contribution eligibility and the maximum amount you can contribute to a Roth IRA savings account.

Roth IRA contributions are phased out for higher income earners. Income within the 'phase-out' range is limited to a prorated contribution. Income exceeding the phase-out range won't qualify you to make contributions to a Roth IRA.

Contribution limits increase with inflation in $500 increments. Increases only occur when the cumulative effect of inflation since the previous adjustment is $500 or more.