Roth IRA Calculator
This is a fix rate calculator for calculating the balance of Roth IRA savings and its comparison with regular taxable savings. This calculator assumes the contribution to be made at the end of the month or year.
What is Roth IRA?
A Roth IRA is one type of Individual Retirement Arrangement (IRA) that provides tax-free growth. The major difference between Roth IRA and traditional IRA are:
- Contributions to a Roth IRA are not tax deductible.
- Direct contributions to a Roth IRA may be withdrawn tax free at any time with out penalty.
The contribution limit in 2010 for age 49 and below is $5,000, for age 50 and above is $6,000.