Determine your 2026 Roth IRA contribution (with MAGI phase-out applied), then project the tax-free retirement balance.
Allowed Roth IRA contribution (2026)
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Projected balance at retirement
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All withdrawals after age 59½ are tax-free (5-year rule applies).
Total contributions
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Tax-free growth
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Worked example
Take a 35 year old single filer with a modified adjusted gross income of $100,000, starting from a $0 balance, expecting a 7% return and 3% inflation, contributing until age 65. Because that MAGI sits well below the 2026 single phase-out range of $150,000 to $165,000, the full contribution is allowed. The under-50 limit is $7,000, so the tool deposits $7,000 each year for all 30 years. Even though the limit rises to $8,000 at age 50, the allowance here stays at $7,000 because it is set from the contribution cap that applies given this MAGI. Across 30 years that is $210,000 of contributions. Growing the balance 7% a year after each deposit compounds it to about $707,511 by age 65. Of that total, $210,000 is contributions and roughly $497,511 is tax-free growth. Adjusted for 3% inflation, the balance is worth about $291,485 in today's dollars, and because it is a Roth, qualified withdrawals come out tax-free.
| Item | Amount |
|---|---|
| Allowed annual contribution | $7,000 |
| Years contributing | 30 |
| Total contributions | $210,000 |
| Tax-free growth | $497,511 |
| Balance at 65 | $707,511 |
How it is calculated
A Roth IRA is funded with after-tax dollars, so contributions never reduce your taxable income, but qualified withdrawals in retirement are completely tax-free. The tool first checks your MAGI against the 2026 phase-out range for your filing status. Below the range you get the full limit, $7,000 under 50 or $8,000 at 50 and older; inside the range the allowance is reduced proportionally; above the ceiling a direct contribution is not allowed and a backdoor Roth is the usual workaround. It then deposits the allowed amount at the start of each year and grows the balance by your expected return, repeating until your target age. Because there is no tax drag inside the account, every dollar of growth stays invested, which is what makes the long-run compounding so powerful. The real value figure restates the ending balance in today's dollars using your inflation assumption.