Roth IRA Calculator

Use our Roth IRA calculator to track how your retirement investments might grow over time. Get started preparing your future today.

What amount should I put into a Roth IRA

The amount you contribute to a Roth IRA will depend on your income, financial obligations, tax bracket and other factors.

However, Roth IRA's tax benefits on qualified distributions and capital gains make them a good investment vehicle.

For the 2022 tax year, you can contribute up $6,000 of your earnings (or the lesser amount if it was under $6,000). Your monthly contribution to 2022 will be $500 if you are aiming to contribute the maximum amount.

You may also make catch-up contributions if you're over 50.

Consider the following example to illustrate the benefits of compounding regular Roth IRA contributions. Let's assume you make $6,000 per year over a period of 20 years with an average interest accrual rate of 6%.

The total amount of your contributions for this period would be $126,000. However, the value of your Roth IRA balance is estimated to be close to $255,000.

Roth IRA Contributions to 2023

Modified gross Income (AGI)
Contribution limit
Married Filing Together or Qualifying Widow(er) < $218,000 Limitless possibilities
Married Filing Together Or Qualifying Widow(er) > $218,000, but $228,000 A reduced amount
Married Filing Together Or Qualifying Widow(er) > $228,000 zero
You were married and filed separately, but you lived with your spouse during the year < $10,000 A reduced amount
You were married and filed separately, but you lived with your spouse during the year > $10,000 zero
single or headof household or married filing separate if you didn't live with your spouse during the year < $138,000 Limitless possibilities
single or headof household or married filing separate if you didn't live with your spouse during the year > $138,000, but $153,000 A reduced amount
single or headof household or married filing separate if you didn't live with your spouse during the year > $153,000 zero

Your Roth IRA reduction

You can reduce the amount that you can contribute by following these steps:

  1. Start with your modified AGI.
  2. Add (1) to the amount:
    • $218,000 for filing a joint tax or qualifying widow(er),
    • $-0 if you are married and file a separate tax. If you were living with your spouse during the year,
    • $138,000 for all others
  3. Divide (2) the result by $15,000 ($10,000 for joint returns, qualifying widow(er), and married filing separate returns) to find out how many years you lived with your spouse.
  4. Multiply the maximum contribution limit before this adjustment and any reductions for contributions to traditional IRAs by (3).
  5. Add the result in (4) to the maximum contribution limit prior to the reduction. This is your reduced contribution limit.

Roth IRA Definitions

Here are key terms that are associated with Roth IRAs. It is important to understand their meanings in order to effectively incorporate this retirement account into your investment portfolio.

Roth IRA: This type of individual retirement account is known for its favorable tax status. Contributions are made after tax (i.e. there is no tax-deferral as a traditional IRA, 401(k), etc.) but capital gains and distributions will be exempt from tax.

Limits on annual contributions: How much you can contribute each year to your Roth IRA. Except for those who qualify for a catch up contribution of $7,000., the current limit for 2022 is $6,000

Modified adjusted Gross Income (MAGI). This is your modified adjusted gross, or adjusted income, after taking certain tax deductions. It excludes certain tax-exempt interest. This number is crucial for Roth IRAs as it will determine if you can or cannot contribute to a Roth IRA. A single taxpayer with a MAGI greater than $144,000 cannot contribute to a Roth IRA by 2022.

Tax filing status: You can file separately, jointly, or as a single taxpayer. The MAGI phase-out limit for Roth IRA contributions is also affected by your filing status. Single taxpayers are eligible to stop making Roth IRA contributions if their MAGI exceeds $144,000, but married taxpayers can't unless they have a MAGI of over $214,000.

Flation: Flation refers to the decline in your money's purchasing power due to increases in the prices of consumer goods and resources. It is crucial to invest your Roth IRA contributions in a way that beats inflation and maintains the portfolio's value.

Retirement Age: The date you intend to retire. It is important to know your retirement age so you can determine how much money you need to save, and how much you are able to withdraw from your Roth IRA based upon your life expectancy.

Life expectancy This is the expected length of your life, taking into account both personal and national health factors. Add your retirement age to your life expectancy and you can get an estimate of the amount of time your Roth IRA savings and other savings will last.

Expected Rate of Return: This is the amount that you expect your Roth IRA investments to grow over a time period (e.g., a calendar year). You can use our Roth IRA Growth Calculator to see how your portfolio size can change at different rates of return.

Minimum distribution (RMD), This is the amount that you must take to receive a Roth IRA distribution under law. It begins when you turn 72.

Compounded interest: Earning interest on top previously earned interest is the key to your Roth IRA's exponential growth.

Monthly retirement expenditure: This is the amount that you plan to spend each month on retirement for expenses such as food, housing, or healthcare.

Catch up contribution: People over 50 years old can make greater catch-up contributions to Roth IRAs ($7,000 in 2022, compared to $6,000 for the standard contribution).


Which is better, a 401k or a roth IRA.

Both accounts are excellent retirement options that offer distinct value propositions. A 401(k), for example, allows you to contribute more (e.g. $20,500 in 2022), while Roth IRA distributions, including gains, are exempt from tax.

How do I start a roth IRA.

There are many wealth management companies that can help you start a Roth IRA.

What makes our Roth IRA calculator better than Dave Ramsey's, Fidelity's, or NerdWallet’s?

While all calculators can provide similar data, our calculator was designed to be simple and accurate in terms of overall user experience.

Frequently Asked Questions

What are the fees for an IRA that holds gold?

Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance and any investment costs.

If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.

Many providers also charge annual management fees. These fees are usually between 0% and 1%. The average rate is.25% each year. These rates are often waived if a broker like TD Ameritrade is used.

Should You Buy Gold?

In the past, gold was considered a haven for investors during economic turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.

The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.

Some experts believe that this could change very soon. Experts believe that gold prices could skyrocket in the face of another global financial crisis.

They also point out that gold is becoming popular because of its perceived value and potential return.

Here are some things to consider if you're considering investing in gold.

  • Before you start saving money for retirement, think about whether you really need it. It is possible to save enough money to retire without investing in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
  • Second, ensure you fully understand the risks involved in buying gold. Each type offers varying levels and levels of security.
  • Remember that gold is not as safe as a bank account. Your gold coins may be lost and you might never get them back.

Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.

Can I buy or sell gold from my self-directed IRA

However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.

Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.

If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments that are based on gold's price. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.

Should You Open a Precious Metal IRA?

Precious metals are not insured. This is the most important fact to know before you open an IRA account. It is impossible to get back money if you lose your investment. This includes losing all your investments due to theft, fire, flood, etc.

This type of loss can be avoided by investing in physical silver and gold coins. These items have been around for thousands of years and represent real value that cannot be lost. You would probably get more if you sold them today than you paid when they were first created.

Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.

If you decide to open an account, remember that you won't see any returns until after you retire. Don't forget the future!

How much should precious metals be included in your portfolio?

To answer this question, we must first understand what precious metals are. Precious elements are those elements which have a high price relative to other commodities. This makes them highly valuable for both investment and trading. Gold is by far the most common precious metal traded today.

There are also many other precious metals such as platinum and silver. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also not affected by inflation and depression.

The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower interest rates, making bonds less attractive investments.

However, when an economy is strong, the reverse effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. These precious metals are rare and become more costly.

Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.

How do you withdraw from an IRA that holds precious metals?

First, determine if you would like to withdraw money directly from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.

A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. You will also have to account for taxes due on any amount you withdraw if you choose this option.

Next, you'll need to figure out how much money you will take out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.

Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.

Once these calculations have been completed you will need to open an account with a brokerage. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.

When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. You'll have to weigh the pros of each option before you make a decision.

Bullion bars are easier to store than individual coins. You will need to count each coin individually. You can track their value by keeping individual coins.

Some people like to keep their coins in vaults. Others prefer to store them in a safe deposit box. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.


  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (
  • You can only purchase gold bars at least 99.5% purity. (
  • The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (

External Links

How To

The History of Gold as an Asset

Gold was a currency from ancient times until the early 20th century. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. Aside from its inherent value, it could be traded internationally. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.

In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. The United States began minting large quantities gold coins at this time, which led to a drop in the price. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They decided to return some of the gold they had left to Europe.

Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The price of gold rose significantly over the years. Although the price of gold fluctuates today, it remains one of your most safe investments.


By: Donny Gamble
Title: Roth IRA Calculator
Sourced From:
Published Date: Sun, 13 Nov 2022 19:44:57 +0000

Recent Posts
Latest Featured Posts
Latest News Posts