# Easy Roth IRA Calculator

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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

1. 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.
2. Contribution can be continued after age 70½, as long as you still have a qualifying earned income.
3. There are no mandatory withdrawals..
4. No income taxes for inherited Roth IRAs and withdrawals will also be income tax-free.

## 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