Roth IRA Contribution Calculator
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.
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!
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 2017 - 2018 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 Contribution Tax Calculator
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.