If you are using Internet Explorer, you may need to select to ‘Allow Blocked Content’ to view this calculator. Financial Calculators from KJE Computer Solutions, Inc. Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes.
We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Use this calculator to compare the Roth IRA to an ordinary taxable investment. The best financial calculators anywhere! Work, save and email your results! Creating a Roth IRA can make a big difference in your retirement savings. There is no tax deduction for contributions made to a Roth IRA, however all future earnings are sheltered from taxes, under current tax laws.
For the purposes of this calculator, we assume that your income does not limit your ability to contribute to a Roth IRA. Starting in 2010 high income individuals have the option to make non-deductible traditional IRA contributions and then immediately convert them to a Roth IRA. This can effectively eliminate the income phase-out for Roth IRA contributions. Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your IRA.
So if you retire at age 65, your last contribution is assumed to have happened when you were actually 64. The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependent on the types of investments you select.
2017, had an annual compounded rate of return of 8. Savings accounts at a financial institution may pay as little as 0. It is important to remember that these scenarios are hypothetical and that future rates of return can’t be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. The marginal tax rate you expect to pay on your taxable investments. The total amount contributed to this IRA.