Roth IRA Calculators

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Roth IRA Retirement Calculator

To determine how much income your Roth IRA will pay you now or in the future, use this monthly payout calculator to get accurate annual amounts updated in real-time.

This calculator uses annuities to calculate how much monthly income you can receive from your Roth IRA. These are actual numbers, not estimates. We use annuities with Guaranteed Lifetime Withdrawal Benefits to determine the monthly payout because they contractually guarantee payment for the rest of your lifetime. Any remaining balance will be passed down to your beneficiaries, relieving the stress of worrying about running out of money.

Roth IRA Calculator For Saving

Using our Roth IRA Calculator, you can estimate the growth of your investments over time. By adjusting variables such as starting balance, annual contributions, current age, age at retirement, expected rate of return, and marginal tax rate, you can see how different scenarios will impact your retirement savings. By harnessing the power of compound interest, this calculator provides a clear insight into the potential growth of your investment over time. For example, if you start with a balance of $0, contribute $5,000 annually, beginning at age 29, retire at 65, and expect a 7% return with a 24% marginal tax rate, your Roth IRA could be worth $796,687.01 at retirement.

Understanding The Roth IRA

Creating a Roth IRA can significantly impact your retirement savings. Unlike traditional IRAs, Roth IRAs offer the benefit of tax-free growth. While contributions to a Roth IRA are not tax deductible, the investment earnings grow tax-free, and qualified withdrawals in retirement are also tax-free. This unique feature makes Roth IRAs an excellent option for long-term retirement planning.

Key Features Of Roth IRA

  • Tax-Free Growth: Contributions to a Roth IRA grow tax-free. This means you won’t pay taxes on the earnings as long as you follow the withdrawal rules.
  • No Required Minimum Distributions (RMDs): Unlike traditional IRAs, Roth IRAs do not require RMDs during the account holder’s lifetime. This allows your investments to continue growing tax-free for a longer period.
  • Flexible Contribution Limits: For 2024, you can contribute up to $7,000 annually to your Roth IRA, with an additional $1,000 catch-up contribution if you are 50 or older.

Roth IRA Contribution Phaseout Ranges

Your ability to contribute to a Roth IRA may be limited based on your income. Here are the phaseout ranges for 2024:

Married filing separately: $0 to $10,000

Married filing jointly or head of household: $230,000 to $240,000

Single: $146,000 to $161,000

Roth IRA Withdrawal Comparison

The table below compares withdrawals from Roth IRA accounts with other taxable savings accounts.

FeaturesAnnuity401kIRARoth IRA
Withdrawal Percentage5.20% – 6.55%4%4%4%
Can Income Increase?YesYesYesYes
Can Income Decrease?NoYesYesYes
How Long Will Money Last?Lifetime30 Years+30 Years+30 Years+
Annual Fees0 – 1.50%1% – 4%1% – 4%1% – 4%
TaxationTaxable/Tax-FreeTaxableTaxableTax-Free
Death BenefitAccount BalanceAccount BalanceAccount BalanceAccount Balance

Example: A 60-year-old retiree starts withdrawing immediately from their $1 million portfolio, they would receive:

  • Annuity: Between $52,000 and $61,000
  • 401k: $40,000
  • IRA: $40,000
  • Roth IRA: $40,000
Roth Ira Calculator

How We Can Help

At The Annuity Expert, we understand the challenges you face in planning for a secure retirement. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we are dedicated to finding the best solutions at the lowest costs. Our expertise in Roth IRAs and retirement planning allows us to guide you in maximizing your savings and ensuring a comfortable future.

Recognizing The Core Problem

The primary challenge in retirement planning is ensuring your savings last throughout your retirement years. Many people worry about running out of money, facing high taxes on their savings, or making the wrong investment choices. These concerns can cause significant stress and anxiety, impacting your overall well-being.

Our extensive experience enables us to provide tailored advice that meets your unique needs. We believe in offering personalized solutions that maximize your benefits while minimizing costs. Our commitment to your financial well-being drives everything we do, ensuring you receive the best possible guidance.

What We Recommend

Step 1: Initial Consultation

  • The first step is to schedule a free consultation with us. During this meeting, we will discuss your current financial situation, retirement goals, and any concerns you have. This personalized approach allows us to understand your needs and create a customized plan.
  • Benefit: You receive a clear understanding of your options and a tailored strategy for your retirement.

Step 2: Detailed Analysis And Plan Development

  • Next, we thoroughly analyze your finances and develop a comprehensive retirement plan. This includes evaluating your Roth IRA contributions, potential growth, and tax implications. We provide detailed reports and projections to help you make informed decisions.
  • Benefit: You gain confidence in your retirement strategy with clear, actionable insights.

Step 3: Implementation And Ongoing Support

  • Finally, we assist you in implementing the plan and provide ongoing support to ensure you stay on track. We monitor your progress, make necessary adjustments, and keep you informed about any changes in tax laws or investment opportunities.
  • Benefit: You achieve peace of mind knowing your retirement plan is actively managed and optimized.

Features And Benefits

  • Personalized Advice: Tailored strategies that fit your unique needs, ensuring maximum benefits.
  • Comprehensive Analysis: In-depth financial analysis and detailed projections for informed decision-making.
  • Ongoing Support: Continuous monitoring and adjustments to keep your plan on track.

Addressing Common Objections

  • “I’m unsure if I can afford it.” Our free initial consultation ensures you can explore your options without any financial commitment.
  • “I don’t understand all the details.” We provide clear explanations and detailed reports to ensure you understand every aspect of your plan.
  • “I’m worried about market volatility.” Our strategies include risk management to protect your investments and ensure stable growth.

Not working with us means potentially missing out on tax-free growth, personalized advice, and comprehensive support, leading to financial stress and uncertainty. On the other hand, working with us ensures a secure, well-planned retirement, reducing stress and providing peace of mind. Knowing your future is in expert hands, you’ll feel confident and secure.

Contact us today for free advice or a quote.

Roth Ira Withdrawal Calculator

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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