Roth IRA vs Traditional IRA Calculator

Can I contribute to both a Roth IRA and a 401(k)?

Yes — they are separate accounts with independent limits. In 2024, you can contribute $7,000 to an IRA and $23,000 to a 401(k) — $30,000 total. Most financial advisors recommend contributing to your 401(k) up to the employer match first, then maxing the Roth IRA, then going back to increase 401(k) contributions.

Who cannot contribute to a Roth IRA?

Roth IRA eligibility phases out at higher incomes. For 2024: Single filers can contribute the full amount under $146,000; partial contribution $146,000–$161,000; no contribution above $161,000. MFJ: full below $230,000; partial $230,000–$240,000; none above. High earners can use the "Backdoor Roth IRA" strategy — contributing to a Traditional IRA and converting.

What is the Roth IRA 5-year rule?

You must have had a Roth IRA open for at least 5 years AND be 59½ or older to take tax-free withdrawals of earnings. If you withdraw earnings before meeting both conditions, you may owe income tax and a 10% penalty. Roth IRA contributions (not earnings) can always be withdrawn tax- and penalty-free at any time.

What is a Backdoor Roth IRA?

A strategy for high earners who exceed the Roth IRA income limit. Steps: (1) Contribute to a non-deductible Traditional IRA, (2) convert the Traditional IRA to a Roth IRA. This allows anyone to fund a Roth regardless of income. Be aware of the "pro-rata rule" if you have existing pre-tax IRA funds.