Calculator Inputs
Example Data Table
| Age | Filing Status | MAGI | Contribution | Return | Years | Estimated Result |
|---|---|---|---|---|---|---|
| 35 | Single | $95,000 | $7,000 | 7.00% | 32 | Long-term Roth balance projection |
| 52 | Joint | $180,000 | $8,600 | 6.50% | 15 | Catch-up contribution scenario |
| 43 | Single | $160,000 | $7,500 | 6.00% | 24 | Income phase-out scenario |
Formula Used
The calculator first checks the annual IRA limit, taxable compensation, other IRA contributions, and Roth income phase-out range.
Allowed Roth Contribution = Base Limit × ((Upper MAGI Limit - MAGI) ÷ Phase-Out Range)
When MAGI is below the phase-out range, the full compensation-limited amount is used. When MAGI is above the ceiling, the allowed Roth contribution becomes zero.
Monthly Growth = Balance × (1 + Monthly Net Return) + Monthly Contribution
The monthly net return equals the expected return minus annual fees, converted to a monthly rate. Inflation-adjusted value divides the future balance by accumulated inflation.
Monthly Income = Balance × r ÷ (1 - (1 + r)-n)
How to Use This Calculator
Enter your current age and planned retirement age. Add your existing Roth IRA balance and the annual amount you want to contribute.
Select the tax year and filing status. Then enter your modified adjusted gross income and taxable compensation. These values help test Roth IRA eligibility.
Add return, fee, tax, inflation, and drawdown assumptions. Press the calculate button. The result appears above the form and below the header section.
Use the CSV button to save table data. Use the PDF button to print or share a simple report. Review the assumptions before making a financial decision.
Roth IRA Fidelity Planning Guide
Why This Calculator Matters
A Roth IRA can be a strong retirement tool. Contributions use after-tax dollars. Qualified withdrawals can be tax free. That makes the account useful for savers who expect higher taxes later. This calculator helps compare growth, contribution room, fees, and future income. It is designed for Fidelity-style planning, but it is independent and educational.
Eligibility Comes First
Roth IRA planning starts with eligibility. Your filing status and modified adjusted gross income affect how much you can contribute. Your taxable compensation also matters. You cannot contribute more than your compensation. The tool estimates the allowed amount before projecting growth. This avoids unrealistic savings assumptions.
Growth Depends on Assumptions
The projection uses monthly compounding. It subtracts annual fund or advisory fees from the expected return. Small fees can affect large balances over decades. Contribution increases can also make a major difference. Even a modest yearly increase may create a larger future account.
Taxes Change the Comparison
The Roth balance is shown as a future tax-free estimate. A traditional after-tax estimate is also shown. That comparison uses your expected retirement tax rate. It helps show why Roth money can be valuable. The best choice still depends on income, tax law, investment risk, and personal goals.
Inflation and Income Planning
A large future number may feel impressive. Inflation can reduce its buying power. The calculator therefore shows an inflation-adjusted value. It also estimates monthly retirement income over a selected drawdown period. This makes the result easier to connect with real spending needs.
Use Results Carefully
This tool is not tax, investment, or legal advice. It gives an estimate based on your inputs. Real returns will vary. Contribution limits may change. Personal tax rules can be complex. Use the report as a planning guide. Then confirm details with a qualified professional before acting.
FAQs
1. What does this Roth IRA calculator estimate?
It estimates contribution eligibility, projected Roth balance, earnings, inflation-adjusted value, and possible monthly retirement income using your selected assumptions.
2. Is this calculator affiliated with Fidelity?
No. It is an independent planning page. The word Fidelity is used for search context and user intent, not official affiliation.
3. Why does MAGI matter?
Modified adjusted gross income controls Roth IRA eligibility. Higher MAGI may reduce or remove your allowed annual Roth contribution.
4. Can I contribute if I am over the income limit?
Direct Roth IRA contributions may be unavailable. Some investors research backdoor Roth strategies, but tax rules can be complex.
5. Does the calculator include investment fees?
Yes. Enter an annual fee or expense ratio. The tool subtracts it from expected return before monthly compounding.
6. Why is taxable compensation required?
IRA contributions generally cannot exceed taxable compensation. The calculator uses compensation as another limit on annual contributions.
7. What does inflation-adjusted value mean?
It shows the projected balance in today's buying power. This helps you compare future dollars with current spending needs.
8. Should I rely on this result for taxes?
No. Use it for education and planning. Confirm tax details with a qualified adviser before making retirement decisions.