- 1Eligibility and Contribution Limits
- 2Growth Potential
Enter Your Information
To determine how much you are eligible to contribute to each type of IRA, enter the following information.
Please fill in the required fieldsPlease enter an amount between $0 and $3,000,000Please enter an amount between $0 and $3,000,000Contribution Limits:
You
| Roth IRA | |
| Traditional IRA | |
| Tax-Deductible | |
| Nondeductible |
Spouse
| Roth IRA | |
| Traditional IRA | |
| Tax-Deductible | |
| Nondeductible |
What this means:
Based on the information you entered the figures above represent the maximum contribution(s) you and your spouse may be eligible to make. To calculate how these contributions could grow over time click “Continue” above.
Important:
You can contribute to either or both types of IRAs for which you are eligible as long as your combined total contributions do not exceed the annual maximum contributions limits or 100% of your earned income, whichever is less. Limits are $6,500 in 2023 or $7,500 if you are age 50 or older. Limits are $7,000 in 2024 or $8,000 if you are age 50 or older. For more information on contribution limits and eligibility see Calculator Assumptions.
Enter Your Information
To estimate the potential value of your IRA alternatives over time, answer the following questions.
Please fill in the required fieldsPlease enter an amount between 1 and 50CalculateRecalculate
Compare IRAs Over Time:
You
| Roth IRA | |
contribution | |
| Traditional IRA | |
Tax-Deductible contribution | |
Nondeductible contribution |
Spouse
| Roth IRA | |
contribution | |
| Traditional IRA | |
Tax-Deductible contribution | |
Nondeductible contribution |
What this means:
Based on the information you entered, the above estimates show the potential after tax value of your IRA alternatives at withdrawal in 30 years. If you’re married and filing jointly enter an average for both you and your spouse, or, you may re-run the analysis with different inputs for your spouse.
Important:
The tax consequences of contributing to different types of IRAs are built into these future estimates. Estimates assume a one-time contribution is made to each of the accounts for which you are currently eligible. See Calculator Assumptions for more information. This illustration is hypothetical in nature. Actual results will vary.
Print your results
You
| Roth IRA | |
| Traditional IRA | |
| Tax-Deductible | |
| Nondeductible |
Spouse
| Roth IRA | |
| Traditional IRA | |
| Tax-Deductible | |
| Nondeductible |
Your federal income tax bracket determines how much income tax you'll pay this year, which is a key consideration in determining your IRA investment strategy.
| Single Filers | Married Filing Jointly & Surviving Spouses | Head of Household | Married Filing Separately | Federal Tax Rate |
|---|---|---|---|---|
| $0 - $9,700 | $0 - $19,400 | $0 - $13,850 | $0 - $9,700 | 10% |
| $9,701 - $39,475 | $19,401 - $78,950 | $13,851 - $52,850 | $9,701 - $39,475 | 12% |
| $39,476 - $84,200 | $78,951 - $168,400 | $52,851 - $84,200 | $39,476 - $84,200 | 22% |
| $84,201 - $160,725 | $168,401 - $321,450 | $84,201 - $160,700 | $84,201 - $160,725 | 24% |
| $160,726 - $204,100 | $321,451 - $408,200 | $160,701 - $204,100 | $160,726 - $204,100 | 32% |
| $204,101 - $510,300 | $408,201 - $612,350 | $204,101 - $510,300 | $204,101 - $360,175 | 35% |
| $510,301 or more | $612,351 or more | $510,301 or more | $306,176 or more | 37% |
| Single Filers | Married Filing Jointly & Surviving Spouses | Head of Household | Married Filing Separately | Federal Tax Rate |
|---|---|---|---|---|
| $0 - $9,875 | $0 - $19,750 | $0 - $14,100 | $0 - $9,875 | 10% |
| $9,876 - $40,125 | $19,751 - $80,250 | $14,101 - $53,700 | $9,876 - $40,125 | 12% |
| $40,126 - $85,525 | $80,251 - $171,050 | $53,701 - $85,500 | $40,126 - $85,525 | 22% |
| $85,526 - $163,300 | $171,051 - $326,600 | $85,501 - $163,300 | $85,526 - $163,300 | 24% |
| $163,301 - $207,350 | $326,601 - $414,700 | $163,301 - $207,350 | $163,301 - $207,350 | 32% |
| $207,351 - $518,400 | $414,701 - $622,050 | $207,351 - $518,400 | $207,351 - $311,025 | 35% |
| $518,401 or more | $622,051 or more | $518,401 or more | $311,026 or more | 37% |
This IRA calculator is designed to give you a basic overview of your IRA alternatives. The tax law is complex, and the income limits and requirements of IRA eligibility are subject to change annually. The estimates presented are not based on the performance of any specific securities, and your results may differ. Also, information and regulations described here reflect Federal tax rules. State tax rules sometimes differ. Schwab recommends you consult with a qualified tax advisor before making IRA decisions.
Important: This analysis assumes that for the tax year selected, your earned income equals or exceeds the annual contribution limits. Please keep in mind that if your earned income is below these levels, your eligibility to make IRA contributions will be further limited. The analysis also assumes that you are at least age 59-1/2 when making withdrawals and, in the case of Roth IRA, you have satisfied the 5-year holding rule. Withdrawals not meeting that criteria may be subject to taxes and a 10% Federal penalty. For Roth IRAs, the analysis assumes that the amount of the contribution grows tax-free at your hypothetical rate of return for the number of years you selected until taking your first withdrawal. For Traditional IRAs, the analysis assumes that the tax savings from deducting the contribution are invested in a separate, taxable account at your hypothetical rate of return and then added to the value of your IRA at withdrawal. For nondeductible contributions the analysis assumes that the contribution grows tax-deferred at your hypothetical rate of return for the number of years you selected until first withdrawal.
Note: this tool is using the 2023 and 2024 cost of living tables.
You can contribute to either or both types of IRAs for which you are eligible each year as long as your combined total contributions do not exceed the annual maximum contributions limits or 100% of your earned income, whichever is less. Limits are $6,500 in 2023 or $7,500 if you are age 50 or older. Limits are $7,000 in 2024 or $8,000 if you are age 50 or older.
A contribution to a Roth IRA is not tax-deductible, so it does not offer immediate tax relief. However, when you take qualified distributions from your Roth, you’ll pay no taxes or penalties on the earnings or contributions in the account. If you’re under 59½ and the account has been open for less than five years, withdrawals may be subject to taxes and a 10% Federal tax penalty.
Eligibility to make Roth IRA contributions starts to phase out once your modified adjusted gross income (MAGI) exceeds certain limits as shown below.
| Modified Adjusted Gross Income (MAGI) | Maximum Contribution for individuals under age 50 | Maximum Contribution for individuals age 50 and older | ||
|---|---|---|---|---|
| Single Filers | Married Filing Jointly | Married Filing Separately | ||
| under $138,000 | under $218,000 | $0 | $6,500 | $7,500 |
| $139,500 | $219,000 | $1,000 | $5,850 | $6,750 |
| $141,000 | $220,000 | $2,000 | $5,200 | $6,000 |
| $142,500 | $221,000 | $3,000 | $4,550 | $5,250 |
| $144,000 | $222,000 | $4,000 | $3,900 | $4,500 |
| $145,500 | $223,000 | $5,000 | $3,250 | $3,750 |
| $147,000 | $224,000 | $6,000 | $2,600 | $3,000 |
| $148,500 | $225,000 | $7,000 | $1,950 | $2,250 |
| $150,000 | $226,000 | $8,000 | $1,300 | $1,500 |
| $151,500 | $227,000 | $9,000 | $650 | $750 |
| $153,000 & over | $228,000 & over | $10,000 & over | $0 | $0 |
| Modified Adjusted Gross Income (MAGI) | Maximum Contribution for individuals under age 50 | Maximum Contribution for individuals age 50 and older | ||
|---|---|---|---|---|
| Single Filers | Married Filing Jointly | Married Filing Separately | ||
| under $146,000 | under $230,000 | $0 | $7,000 | $8,000 |
| $147,500 | $231,000 | $1,000 | $6,300 | $7,200 |
| $149,000 | $232,000 | $2,000 | $5,600 | $6,400 |
| $150,500 | $233,000 | $3,000 | $4,900 | $5,600 |
| $152,000 | $234,000 | $4,000 | $4,200 | $4,800 |
| $153,500 | $235,000 | $5,000 | $3,500 | $4,000 |
| $155,000 | $236,000 | $6,000 | $2,800 | $3,200 |
| $156,500 | $237,000 | $7,000 | $2,100 | $2,400 |
| $158,000 | $238,000 | $8,000 | $1,400 | $1,600 |
| $159,500 | $239,000 | $9,000 | $700 | $800 |
| $161,000 & over | $240,000 & over | $10,000 & over | $0 | $0 |
If you have earned income, you are eligible to contribute to a Traditional IRA. Your Traditional IRA is fully deductible if neither you nor your spouse participates in an employer sponsored plan. Deductibility is limited if you or your spouse participate in an employer-sponsored plan as shown in the table below.
With a tax-deductible contribution to a Traditional IRA, you defer paying taxes on earnings and contributions until withdrawal. If you are not eligible to make a tax-deductible contribution, you may still be eligible to make a nondeductible contribution to a traditional IRA. While the contribution is made with after-tax income, the assets can grow tax-deferred and any earnings will be taxed at time of withdrawal. You should consult with your Tax Advisor to determine if a nondeductible traditional IRA may be appropriate for your situation.
| Modified Adjusted Gross Income (MAGI) | Maximum deduction for 2023 for those under age 50 | Maximum deduction for 2023 for those age 50 and older | |||
|---|---|---|---|---|---|
| Single Filers | Married Filing Jointly | Married Filing Separately | |||
| You Participate | Spouse Participates | ||||
| $73,000 & under | $116,000 & under | $218,000 & under | $0 | $6,500 | $7,500 |
| $74,000 | $118,000 | $219,000 | $1,000 | $5,850 | $6,750 |
| $75,000 | $120,000 | $220,000 | $2,000 | $5,200 | $6,000 |
| $76,000 | $122,000 | $221,000 | $3,000 | $4,550 | $5,250 |
| $77,000 | $124,000 | $222,000 | $4,000 | $3,900 | $4,500 |
| $78,000 | $126,000 | $223,000 | $5,000 | $3,250 | $3,750 |
| $79,000 | $128,000 | $224,000 | $6,000 | $2,600 | $3,000 |
| $80,000 | $130,000 | $225,000 | $7,000 | $1,950 | $2,250 |
| $81,000 | $132,000 | $226,000 | $8,000 | $1,300 | $1,500 |
| $82,000 | $134,000 | $227,000 | $9,000 | $650 | $750 |
| $83,000 & over | $136,000 & over | $228,000 & over | $10,000 & over | $0 | $0 |
| Modified Adjusted Gross Income (MAGI) | Maximum deduction for 2024 for those under age 50 | Maximum deduction for 2024 for those age 50 and older | |||
|---|---|---|---|---|---|
| Single Filers | Married Filing Jointly | Married Filing Separately | |||
| You Participate | Spouse Participates | ||||
| $77,000 & under | $123,000 & under | $230,000 & under | $0 | $7,000 | $8,000 |
| $78,000 | $125,000 | $231,000 | $1,000 | $6,300 | $7,200 |
| $79,000 | $127,000 | $232,000 | $2,000 | $5,600 | $6,400 |
| $80,000 | $129,000 | $233,000 | $3,000 | $49,000 | $56,000 |
| $81,000 | $131,000 | $234,000 | $4,000 | $4,200 | $4,800 |
| $82,000 | $133,000 | $235,000 | $5,000 | $3,500 | $4,000 |
| $83,000 | $135,000 | $236,000 | $6,000 | $2,800 | $3,200 |
| $84,000 | $137,000 | $237,000 | $7,000 | $2,100 | $2,400 |
| $85,000 | $139,000 | $238,000 | $8,000 | $1,400 | $1,600 |
| $86,000 | $141,000 | $239,000 | $9,000 | $700 | $800 |
| $87,000 & over | $143,000 & over | $240,000 & over | $10,000 & over | $0 | $0 |
This tax information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner or investment manager.
The average rate of return figures represent the average annual total returns of six hypothetical investment plans for the period 1970 through 2023. These plans were developed as guides for investors with various time horizons and risk tolerances. These returns are weighted averages of the performance of the indices used to represent each asset class in the plans (including the reinvestment of dividends and interest) and are rebalanced annually.
The indices representing each asset class in the historical asset allocation plans are S&P 500 Index (large-cap stocks); Russell 2000 Index (small-cap stocks); MSCI EAFE Net of Taxes (international stocks); Bloomberg US Aggregate Bond Index; and FTSE 3 Month US Treasury Bill.
These returns are not based on the performance of specific securities during the period. The results you achieve may differ from those represented. The results shown by the tool may differ with each use and over time based on the assumptions and your selections.
Past performance is not an indication of future results. Indices are unmanaged and cannot be invested in directly.
- Large Cap0%
- Small Cap0%
- International0%
- Fixed Income40%
- Cash60%
- Other0%
- Want current income and stability
- Not concerned about increasing the value of your investments
- Compound Avg Annual Return5.9%
- Best Year21%
- Worst Year-5.7%
- Large Cap15%
- Small Cap0%
- International5%
- Fixed Income50%
- Cash30%
- Other0%
- Want current income and stability
- Not concerned about increasing the value of your investments
- Compound Avg Annual Return7.4%
- Best Year22.9%
- Worst Year-10.9%
- Large Cap25%
- Small Cap5%
- International10%
- Fixed Income50%
- Cash10%
- Other0%
- Want current income and relative stability
- Want some opportunity to increase the value of your investments
- Compound Avg Annual Return8.6%
- Best Year26.4%
- Worst Year-15%
- Large Cap35%
- Small Cap10%
- International15%
- Fixed Income35%
- Cash5%
- Other0%
- Want solid growth with relative stability
- Don't need current income
- Can tolerate some fluctuations but considerably less than overall stock market
- Compound Avg Annual Return9.2%
- Best Year30.9%
- Worst Year-22.8%
- Large Cap45%
- Small Cap15%
- International20%
- Fixed Income15%
- Cash5%
- Other0%
- Most concerned about investments growing in value
- Don't need current income
- Have a good tolerance for risk, but want a portfolio with slightly less risk than the overall stock market
- Compound Avg Annual Return9.7%
- Best Year34.7%
- Worst Year-30.5%
- Large Cap50%
- Small Cap20%
- International25%
- Fixed Income0%
- Cash5%
- Other0%
- Most concerned about investments growing in value
- Don't need current income
- Have a good tolerance for risk
- Compound Avg Annual Return9.9%
- Best Year40.2%
- Worst Year-36.4%
| Roth IRAs | Traditional IRAs | |
|---|---|---|
| Contributions | Contributions are not tax-deductible or can be made with qualified 529 plan rollovers. | Fully tax-deductible if neither you nor your spouse participate in a 401(k) or other employer-sponsored retirement plan, or if your Modified Adjusted Gross Income falls below certain limits. |
| Any Earnings | Tax-free, subject to certain limitations. | Taxes are deferred until you begin withdrawing funds. |
| Withdrawals | Qualified withdrawals are tax-free. | Taxable. |
| Roth IRAs | Traditional IRAs | |
|---|---|---|
| Annual limits & eligibility | 2024: Up to $7,000; $8,000 for those age 50 and over. | 2024: Contribute up to $7,000; $8,000 for those age 50 and over. |
| Annual limits & eligibility | 2023: Up to $6,500; $7,500 for those age 50 and over. | 2023: Contribute up to $6,500; $7,500 for those age 50 and over. |
| Annual limits & eligibility | Ability to contribute is based on your earned income. Not subject to age restrictions. | Anyone with earned income may contribute. |
| Roth IRAs | Traditional IRAs | |
|---|---|---|
| Tax considerations | Contributions can be withdrawn at any time without taxes or penalties. | All earnings and deductible contributions are taxable upon withdrawal. |
| Tax considerations | Any Earnings can be withdrawn without taxes or penalties if you are age 59½ or over, and your account has been open five years or more. | Penalties will be assessed if withdrawals are taken before age 59½ , or if withdrawals are not taken upon reaching your required minimum distributions begin date1. |
| Distribution requirements | None. | Required minimum distributions must begin when you reach age 73. |
| Exceptions to penalties | Some exceptions may be made if funds are used for certain purposes, including a first-time home purchase ($10,000 lifetime maximum), education, birth and adoption (up to $5000) or certain medical expenses. | Some exceptions may be made if funds are used for certain purposes, including a first-time home purchase ($10,000 lifetime maximum), education, birth and adoption (up to $5000) or certain medical expenses. |
1. Required minimum distributions must begin when you reach age 73.
| Single Filers | Married Filing Jointly & Surviving Spouses | Head of Household | Married Filing Separately | Federal Tax Rate |
|---|---|---|---|---|
| $0 - $9,700 | $0 - $19,400 | $0 - $13,850 | $0 - $9,700 | 10% |
| $9,701 - $39,475 | $19,401 - $78,950 | $13,851 - $52,850 | $9,701 - $39,475 | 12% |
| $39,476 - $84,200 | $78,951 - $168,400 | $52,851 - $84,200 | $39,476 - $84,200 | 22% |
| $84,201 - $160,725 | $168,401 - $321,450 | $84,201 - $160,700 | $84,201 - $160,725 | 24% |
| $160,726 - $204,100 | $321,451 - $408,200 | $160,701 - $204,100 | $160,726 - $204,100 | 32% |
| $204,101 - $510,300 | $408,201 - $612,350 | $204,101 - $510,300 | $204,101 - $360,175 | 35% |
| $510,301 or more | $612,351 or more | $510,301 or more | $306,176 or more | 37% |
| Single Filers | Married Filing Jointly & Surviving Spouses | Head of Household | Married Filing Separately | Federal Tax Rate |
|---|---|---|---|---|
| $0 - $9,875 | $0 - $19,750 | $0 - $14,100 | $0 - $9,875 | 10% |
| $9,876 - $40,125 | $19,751 - $80,250 | $14,101 - $53,700 | $9,876 - $40,125 | 12% |
| $40,126 - $85,525 | $80,251 - $171,050 | $53,701 - $85,500 | $40,126 - $85,525 | 22% |
| $85,526 - $163,300 | $171,051 - $326,600 | $85,501 - $163,300 | $85,526 - $163,300 | 24% |
| $163,301 - $207,350 | $326,601 - $414,700 | $163,301 - $207,350 | $163,301 - $207,350 | 32% |
| $207,351 - $518,400 | $414,701 - $622,050 | $207,351 - $518,400 | $207,351 - $311,025 | 35% |
| $518,401 or more | $622,051 or more | $518,401 or more | $311,026 or more | 37% |
| Roth | Traditional IRAs | |
|---|---|---|
| Contributions | Not tax-deductible. | Tax-deductible, subject to certain limitations. |
| Earnings | Tax-free, subject to certain limitations. | Taxes are deferred until you begin withdrawing funds. |
| Withdrawals | Qualified withdrawals are tax-free. | Taxable. |
| Roth | Traditional IRAs | |
|---|---|---|
| Annual limits & eligibility | 2009: Up to $5,000; $6,000 for those age 50 and over. No age restrictions. | 2009: Contribute up to $5,000; $6,000 for those age 50 and over. |
| Annual limits & eligibility | 2010: Up to $5,000; $6,000 for those age 50 and older. No age restrictions. | 2010: Contribute up to $5,000; $6,000 for those age 50 and over. |
| Annual limits & eligibility | Ability to contribute is based on your income. If you earn too much to make full contributions see eligibility rules for more information on MAGI limits for full and partial contributions. | Anyone with earned income may contribute until the year they reach age 70½. There are no limits on contributions. |
| Roth | Traditional IRAs | |
|---|---|---|
| Tax/consequences (or considerations?) | Contributions can be withdrawn at any time without taxes or penalties. For Traditional-to-Roth conversions, any converted amounts withdrawn within five years may be subject to taxes and penalties. | All earnings and deductible contributions are taxable upon withdrawal. |
| Earnings can be withdrawn without taxes or penalties if you are 59½ or over, and your account has been open five years or more. | Penalties will be assessed if withdrawals are taken before age 59½ , or if withdrawals are not taken upon reaching 70 ½. | |
| Distribution requirements | None. | Required minimum distributions (RMDs) must begin to be taken by April 1 of the year following the year you reach age 70½. |
| Exceptions to penalties | Some exceptions may be made if funds are used for certain purposes, including a first-time home purchase ($10,000 lifetime limit), education, certain medical expenses, etc. | Some exceptions may be made if funds are used for certain purposes, including a first-time home purchase ($10,000 lifetime limit), education, certain medical expenses, etc. |
| Roth | Traditional IRAs | |
|---|---|---|
| $1,000 Or $0 if you set up an automatic monthly transfer of at least $100. | $1,000 Or $0 if you set up an automatic monthly transfer of at least $100. |