What is the Roth IRA MAGI phase-out range for 2026?

For 2026, the Roth IRA phase-out range is $150,000 to $165,000 MAGI for single filers and head of household, and $236,000 to $246,000 MAGI for married filing jointly. If your MAGI falls within the range, your contribution limit is reduced. Above the range, direct Roth contributions are not allowed, but you can use a Backdoor Roth IRA strategy.

Is a Roth IRA or Traditional IRA better?

Roth IRA is generally better if you expect your tax rate to be the same or higher in retirement, because you pay tax now at a lower rate and withdraw tax-free later. Traditional IRA is better if you expect a significantly lower tax rate in retirement, since you get a tax deduction now and pay tax later at the lower rate. Roth also has no Required Minimum Distributions and more flexible withdrawal rules.

What is the Roth IRA 5-year rule?

The Roth IRA 5-year rule states that earnings are only tax-free and penalty-free if the account has been open for at least 5 tax years and you are at least 59.5 years old. The 5-year clock starts on January 1 of the tax year of your first Roth IRA contribution. Contributions (not earnings) can always be withdrawn tax-free and penalty-free at any time since they were made with after-tax dollars.

Roth IRA Calculator 2026

$7,000/year at 7% for 40 years = $1.49M completely tax-free. Check your contribution limits and compare Roth vs Traditional IRA.

Project your Roth IRA balance at retirement

Current age

Retirement age

Current Roth IRA balance

Annual contribution

2026 limit: $7,000 (under 50) / $8,000 (50+)

Expected annual return

S&P 500 historical average: ~10% nominal, ~7% inflation-adjusted

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How to Use This Calculator

Tab "Tax-Free Growth"

Enter your current age, retirement age, current Roth IRA balance, annual contribution, and expected annual return. The calculator projects your Roth IRA balance at retirement using compound interest. All growth is tax-free at withdrawal (after age 59½ and the 5-year rule). Expand the year-by-year table to see how your balance grows each year.

Tab "Contribution Limits"

Enter your filing status, age, and Modified Adjusted Gross Income (MAGI). The calculator checks whether you qualify for the full $7,000 contribution (or $8,000 if 50+), a reduced amount within the phase-out range, or zero. If your MAGI exceeds the limit, it suggests the Backdoor Roth IRA strategy. The exact phase-out formula is shown so you can verify the math.

Tab "Roth vs Traditional"

Compare the after-tax value of a Roth IRA vs Traditional IRA at retirement. Enter your annual contribution, years to retirement, expected return, current tax rate, and expected retirement tax rate. The calculator shows both accounts growing side-by-side: Roth contributions are after-tax but withdraw tax-free, while Traditional contributions are pre-tax but taxed at withdrawal. The winner depends on whether your retirement tax rate is higher or lower than today.

The Formulas

Future Value (compound growth):
FV = P × (1 + r)ⁿ + C × (((1 + r)ⁿ − 1) / r) × (1 + r)
Where: P = current balance, C = annual contribution, r = annual return rate, n = years

Roth IRA Phase-Out (reduced contribution):
Reduced limit = Full limit × ((Phase-out ceiling − MAGI) ÷ Phase-out range)
Single: $7,000 × (($165,000 − MAGI) ÷ $15,000)
MFJ: $7,000 × (($246,000 − MAGI) ÷ $10,000)
Result rounded down to nearest $10 (minimum $200)

Roth vs Traditional comparison:
Roth after-tax value = FV (all tax-free at withdrawal)
Traditional after-tax value = FV × (1 − retirement tax rate)
Roth wins when: retirement tax rate ≥ current tax rate

Example

$7,000/year — Age 25 to 65, 7% Return

Annual contribution$7,000

Years of investing40

Expected annual return7%

Total contributions$280,000

Total tax-free growth$1,217,136

Projected balance at 65$1,497,136

Contributing the maximum $7,000 per year from age 25 to 65 at a 7% average return produces approximately $1.50M. You put in $280,000 over 40 years, and compound interest generates over $1.2M in tax-free growth. At a 15% retirement tax rate, a Traditional IRA with the same contributions would be worth only $1.27M after taxes — the Roth saves you roughly $225,000 in this scenario. The key insight: the earlier you start, the more powerful tax-free compounding becomes.

Frequently Asked Questions

What is the Roth IRA contribution limit for 2026?▼

The 2026 Roth IRA contribution limit is $7,000 if you are under age 50, or $8,000 if you are age 50 or older. The extra $1,000 is called a "catch-up contribution." These limits apply to your combined contributions across all Traditional and Roth IRA accounts. For example, if you contribute $3,000 to a Traditional IRA, you can only contribute $4,000 to a Roth IRA (assuming you are under 50). You must have earned income at least equal to your contribution amount.

What happens if my income is too high for a Roth IRA?▼

If your Modified Adjusted Gross Income (MAGI) exceeds the phase-out range ($165,000 for single, $246,000 for MFJ), you cannot contribute directly to a Roth IRA. However, there is no income limit on Roth conversions. The "Backdoor Roth IRA" strategy lets you contribute to a non-deductible Traditional IRA and then convert it to a Roth IRA. This is perfectly legal and widely used by high earners. Be aware of the pro-rata rule if you have existing pre-tax IRA balances.

What is the 5-year rule for Roth IRA withdrawals?▼

The Roth IRA 5-year rule requires your account to be open for at least 5 tax years before earnings can be withdrawn tax-free and penalty-free. The clock starts on January 1 of the tax year you make your first Roth contribution. For example, if your first contribution is in April 2026 for tax year 2025, the 5-year period starts January 1, 2025 and ends December 31, 2029. Important: your original contributions (not earnings) can always be withdrawn at any time without tax or penalty, since they were made with after-tax dollars.

Should I choose a Roth IRA or Traditional IRA?▼

Choose Roth if you expect your tax rate to stay the same or increase in retirement. Choose Traditional if you expect a significantly lower tax rate in retirement. Roth is generally better for younger workers in lower tax brackets who expect earnings growth, and for anyone who wants tax-free income flexibility in retirement. Roth IRAs also have no Required Minimum Distributions (RMDs), letting your money grow tax-free for life. Traditional IRAs require RMDs starting at age 73. If unsure, many advisors recommend splitting contributions between both.

Can I contribute to both a Roth IRA and a 401(k)?▼

Yes. Roth IRA and 401(k) have separate contribution limits. In 2026, you can contribute up to $7,000 to a Roth IRA ($8,000 if 50+) and up to $24,500 to a 401(k) ($32,500 if 50+) for a combined $31,500 per year in tax-advantaged retirement savings. If your employer offers a Roth 401(k) option, those contributions also do not affect your Roth IRA limit. The optimal strategy is usually: get the full employer 401(k) match first, then max out your Roth IRA, then contribute more to the 401(k).

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