Why does the Roth end up worth more?

In this comparison both accounts start with the same money, so the only difference is taxes: the taxable account pays tax on earnings every year, while the Roth compounds entirely tax-free.

What happens if I contribute over the limit?

Excess contributions incur a 6% excise tax per year until removed. The calculator flags amounts above the $7,000/$8,000 limits.

Can I have a Roth IRA and a 401(k)?

Yes — you can contribute to both. The IRA contribution limit is shared between traditional and Roth IRAs, and Roth access phases out at higher incomes (use the backdoor Roth then).

Roth IRA Calculator

See what your Roth IRA can become by retirement: contributions plus tax-free compounding, year by year, compared with the same money in a regular taxable account where annual earnings are taxed. Shows the Roth advantage, contribution-limit checks and a full accumulation schedule.

#roth ira#tax free retirement#ira growth#contribution limit#taxable account comparison

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Presets

Current Balance

Annual Contribution

$/year

2024 limit: $7,000 ($8,000 if age 50+). Income phase-outs may reduce it.

Maximize Contributions?

Uses the $7,000 limit ($8,000 age 50+) instead of the amount above.

Expected Rate of Return

% / year

Current Age

yrs

Retirement Age

yrs

Marginal Tax Rate

Applied to yearly earnings in the taxable comparison account.

Live mode: results update as you type.

Roth IRA Balance at Age 65

$1,066,343

vs $751,245 in a taxable account — the Roth ends $315,098 richer

Roth IRA Balance: $1,066,343
Taxable Account Balance: $751,245
Roth Advantage: $315,098
Total Principal: $292,500
Roth Growth (tax-free): $773,843
Taxable Growth (after tax): $458,745
Taxes Paid in Taxable Account: $152,915
Annual Contribution Used: $7,500
Over Contribution Limit: Excess $500 — 6% penalty tax applies
Years of Growth: 35 years

Balance accumulation

Annual accumulation schedule

Age	Principal	Roth IRA End	Taxable Account End
Age 31	$37,500	$39,300	$38,850
Age 32	$45,000	$49,158	$48,098
Age 33	$52,500	$59,607	$57,763
Age 34	$60,000	$70,684	$67,862
Age 35	$67,500	$82,425	$78,416
Age 36	$75,000	$94,870	$89,444
Age 37	$82,500	$108,063	$100,969
Age 38	$90,000	$122,046	$113,013
Age 39	$97,500	$136,869	$125,599
Age 40	$105,000	$152,581	$138,751
Age 41	$112,500	$169,236	$152,494
Age 42	$120,000	$186,890	$166,857
Age 43	$127,500	$205,604	$181,865
Age 44	$135,000	$225,440	$197,549
Age 45	$142,500	$246,467	$213,939
Age 46	$150,000	$268,755	$231,066
Age 47	$157,500	$292,380	$248,964
Age 48	$165,000	$317,423	$267,667
Age 49	$172,500	$343,968	$287,213
Age 50	$180,000	$372,106	$307,637
Age 51	$187,500	$401,932	$328,981
Age 52	$195,000	$433,548	$351,285
Age 53	$202,500	$467,061	$374,593
Age 54	$210,000	$502,585	$398,949
Age 55	$217,500	$540,240	$424,402
Age 56	$225,000	$580,154	$451,000
Age 57	$232,500	$622,464	$478,795
Age 58	$240,000	$667,311	$507,841
Age 59	$247,500	$714,850	$538,194
Age 60	$255,000	$765,241	$569,913
Age 61	$262,500	$818,656	$603,059
Age 62	$270,000	$875,275	$637,696
Age 63	$277,500	$935,291	$673,893
Age 64	$285,000	$998,909	$711,718
Age 65	$292,500	$1,066,343	$751,245

Roth IRA 2024 limits: $7,000 ($8,000 at 50+), phasing out at MAGI $146k–$161k single / $230k–$240k married. Contributions (not earnings) can be withdrawn anytime tax-free; earnings are tax-free after age 59½ and the 5-year rule. No RMDs during the owner’s lifetime.

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Formula

Roth: B ← B(1+r) + C; Taxable: B ← B + B·r·(1−t) + C; Advantage = Roth End − Taxable End

Pro tips

• Contribute early in the year — tax-free compounding on January dollars beats December dollars by a year.
• If your tax rate in retirement will be lower than today, a traditional IRA/401(k) can beat the Roth.
• You can withdraw contributions (not earnings) penalty-free anytime — a Roth doubles as a last-resort emergency fund.

FAQ

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#roth ira#tax free retirement#ira growth#contribution limit#taxable account comparison

Age

Principal

Roth IRA End

Taxable Account End

Age 31

$37,500

$39,300

$38,850

Age 32

$45,000

$49,158

$48,098

Age 33

$52,500

$59,607

$57,763

Age 34

$60,000

$70,684

$67,862

Age 35

$67,500

$82,425

$78,416

Age 36

$75,000

$94,870

$89,444

Age 37

$82,500

$108,063

$100,969

Age 38

$90,000

$122,046

$113,013

Age 39

$97,500

$136,869

$125,599

Age 40

$105,000

$152,581

$138,751

Age 41

$112,500

$169,236

$152,494

Age 42

$120,000

$186,890

$166,857

Age 43

$127,500

$205,604

$181,865

Age 44

$135,000

$225,440

$197,549

Age 45

$142,500

$246,467

$213,939

Age 46

$150,000

$268,755

$231,066

Age 47

$157,500

$292,380

$248,964

Age 48

$165,000

$317,423

$267,667

Age 49

$172,500

$343,968

$287,213

Age 50

$180,000

$372,106

$307,637

Age 51

$187,500

$401,932

$328,981

Age 52

$195,000

$433,548

$351,285

Age 53

$202,500

$467,061

$374,593

Age 54

$210,000

$502,585

$398,949

Age 55

$217,500

$540,240

$424,402

Age 56

$225,000

$580,154

$451,000

Age 57

$232,500

$622,464

$478,795

Age 58

$240,000

$667,311

$507,841

Age 59

$247,500

$714,850

$538,194

Age 60

$255,000

$765,241

$569,913

Age 61

$262,500

$818,656

$603,059

Age 62

$270,000

$875,275

$637,696

Age 63

$277,500

$935,291

$673,893

Age 64

$285,000

$998,909

$711,718

Age 65

$292,500

$1,066,343

$751,245

Pro tips

• Contribute early in the year — tax-free compounding on January dollars beats December dollars by a year.

• If your tax rate in retirement will be lower than today, a traditional IRA/401(k) can beat the Roth.

• You can withdraw contributions (not earnings) penalty-free anytime — a Roth doubles as a last-resort emergency fund.