Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
What is the Roth IRA contribution limit?
For 2024, the limit is $7,000 ($8,000 if 50+). Income limits apply: phase-out begins at $146,000 (single) or $230,000 (married filing jointly). Backdoor Roth may be an option for high earners.
When can I withdraw from a Roth IRA?
Contributions can be withdrawn anytime tax and penalty-free. Earnings are tax-free after age 59½ if the account is at least 5 years old. Earlier withdrawals of earnings may incur taxes and penalties.
Is Roth IRA better than traditional IRA?
Roth is generally favorable if you expect higher tax rates in retirement, want tax-free growth, or value RMD-free retirement. Traditional may be better if you need the tax deduction now or expect lower retirement taxes.
Can I have both a 401k and Roth IRA?
Yes. You can contribute to both if you meet income limits for Roth IRA. Many use 401k for employer match, then max Roth IRA, then return to 401k. This provides tax diversification in retirement.