A Roth grows tax free and comes out tax free after 59 and a half, which is why the growth portion matters more than the contributions. Over 30 years most of the balance is growth, and none of it is taxed.
The rule people miss is that Roth contributions, as opposed to conversions and earnings, can be withdrawn at any age with no tax and no penalty. That makes a Roth the most flexible early retirement account you can hold.
$7,500 for the year if you are under 50, with an additional catch up amount at 50 and over. Contributions phase out above certain incomes, which is why higher earners use the backdoor route instead.
Your contributions, yes, at any time, tax free and penalty free, because you already paid tax on them. Earnings are different and generally need you to be 59 and a half with the account open five years. Conversions have their own five year clock each.
You contribute to a traditional IRA and convert it to Roth, which sidesteps the income limit. The catch is the pro rata rule. If you hold any pre tax traditional IRA balance, the conversion is taxed proportionally across all your IRA money rather than just the new contribution, which quietly ruins the manoeuvre.
Compare your marginal rate now against your expected rate when you withdraw. Traditional wins if you will be in a lower bracket later, which is common for high earners planning an early retirement with a gap year. Roth wins if you are early career, or if you want money that adds nothing to your taxable income later.
Roth IRA calculator
Put in after-tax money now, take it out tax-free later. See what your monthly contribution grows to by retirement — and how much of it is growth you never contributed.
A Roth IRA is funded with after-tax dollars — you get no deduction today — and in exchange qualified withdrawals in retirement are tax-free, growth included. Qualified generally means you're 59½ or older and the account has been open at least five years; earlier withdrawals of growth can be taxed and penalized.
There are annual contribution limits ($7,500 for 2026 under age 50, plus a catch-up amount at 50+) and income limits that phase out direct contributions for higher earners. Both are adjusted by the IRS and change most years, so the limit is an editable field rather than a hard-coded number.
The math: future value of an ordinary annuity compounded monthly — FV = PMT × [((1 + r)^n − 1) / r], where PMT is your monthly contribution, r is your annual return divided by 12, and n is the number of months until retirement. Contributions are assumed to be equal, made at the end of each month, never missed, and never increased; the return is assumed to be a constant, smooth rate. Real markets are not smooth, returns are not guaranteed, and nothing here is adjusted for inflation — a dollar at retirement buys less than a dollar today. This is a simplified estimate for illustration, not financial or tax advice. Your numbers never leave your browser — nothing you type here is stored, sent, or tracked.