A Roth IRA calculator is an easy online tool to know the maturity amount of your periodical deposit of the the tax-paid amounts . So, an individual can use this IRA calculator to know the total accumulated as tax-free amount on maturity.
What is a Roth IRA?
A Roth IRA is a saving instruments specially meant for retirement period . The government does not tax the interest income accumulated on the periodical deposits by the account holder. So, the contributions and earnings of a a Roth IRA account holder grows tax-free. Here is a quiz on Roth IRA
4 Major Advantages of Roth IRA
- The maturity amount out of Roth IRA can be withdraw after initial lock up of five years tax- free and after the age 59½ and once the account has been open for five years.
- Contribution can be continued after age 70½, as long as you still have a qualifying earned income.
- There are no mandatory withdrawals..
- No income taxes for inherited Roth IRAs and withdrawals will also be income tax-free.
Roth IRA Maturity Calculator
Formula used for Roth IRA calculator
Maturity Amount = S * (1+i)f* n + P* [(1+i)f * n – 1 / i ]
Wherein,
- S= the starting account balance
- P= the periodical fixed amount invested at regular intervals
- i is the rate of interest in %
- f is the frequency of interest is paid
- n =is the number years for which Roth IRA shall be made.
2020 Roth IRA Income Limits
How much can you contribute to a Roth IRA ? Well, your Modified Adjusted Gross Income (MAGI) for the year determines the quantum of Roth IRA contribution limits. The following charts shows the for 2010
| Single Filers (MAGI) | Married Filing Jointly (MAGI) | Married Filing Separately (MAGI) | Maximum Contribution for individuals under age 50 | Maximum Contribution for individuals age 50 and older |
|---|---|---|---|---|
| under $124,000 | under $196,000 | $0 | $6,000 | $7,000 |
| $125,500 | $197,000 | $1,000 | $5,400 | $6,300 |
| $127,000 | $198,000 | $2,000 | $4,800 | $5,600 |
| $128,500 | $199,000 | $3,000 | $4,200 | $4,900 |
| $130,000 | $200,000 | $4,000 | $3,600 | $4,200 |
| $131,500 | $201,000 | $5,000 | $3,000 | $3,500 |
| $133,000 | $202,000 | $6,000 | $2,400 | $2,800 |
| $134,500 | $203,000 | $7,000 | $1,800 | $2,100 |
| $136,000 | $204,000 | $8,000 | $1,200 | $1,400 |
| $137,500 | $205,000 | $9,000 | $600 | $700 |
| $139,000 & over | $206,000 & over | $10,000 & over | $0 | $0 |
2019 Roth IRA income limits
| Single Filers (MAGI) | Married Filing Jointly (MAGI) | Married Filing Separately (MAGI) | Maximum Contribution for individuals under age 50 | Maximum Contribution for individuals age 50 and older |
|---|---|---|---|---|
| under $122,000 | under $193,000 | $0 | $6,000 | $7,000 |
| $123,500 | $194,000 | $1,000 | $5,400 | $6,300 |
| $125,000 | $195,000 | $2,000 | $4,800 | $5,600 |
| $126,500 | $196,000 | $3,000 | $4,200 | $4,900 |
| $128,000 | $197,000 | $4,000 | $3,600 | $4,200 |
| $129,500 | $198,000 | $5,000 | $3,000 | $3,500 |
| $131,000 | $199,000 | $6,000 | $2,400 | $2,800 |
| $132,500 | $200,000 | $7,000 | $1,800 | $2,100 |
| $134,000 | $201,000 | $8,000 | $1,200 | $1,400 |
| $135,500 | $202,000 | $9,000 | $600 | $700 |
| $137,000 & over | $203,000 & over | $10,000 & over | $0 | $0 |