Roth IRA calculators are excellent financial planning tools. They can help you estimate the value of your account and see how it can grow over time. Since knowing what your Roth IRA will be worth is critical for determining in you are on target for a comfortable retirement, having a great calculator available is important. With that in mind, here are six of the best Roth IRA calculators around and an overview of their purpose.
1. Bankrate
The Roth IRA calculator at Bankrate is a solid option for retirement planning. It can estimate the value of your account at the time you retire, using a range of factors to give a better picture. With this one, you can even examine your taxable savings by plugging in your marginal tax rate.
2. Nerdwallet
Nerdwallet also has a robust Roth IRA calculator. But unlike the Bankrate one, which simply asks you to fill in a group of fields, the Nerdwallet version walks you through the process. That makes it, comparatively, more user-friendly.
3. SoFi
Another IRA calculator that is incredibly simple to use is available through SoFi. Users answer a few basic questions and get an overview of the kinds of IRA they can use. It clearly shows the maximum allowed contribution based on the input data, which can be beneficial for retirement planning.
4. Voya
If you want to see if a traditional or Roth IRA is a better option for you, this Voya calculator can help you figure it out. After entering basic details, you can review your estimated account totals at retirement as well as an after-tax comparison. It’s a simple way to explore if one approach may suit you better than another.
5. Schwab
Another comparison calculator, the Schwab version actually has fields for both the user and their spouse. This can be helpful for married couples, as it allows both income sources and spouse ages to be factored into the equation.
6. Fidelity
If you are trying to figure out if you should convert a Roth IRA into a traditional, SEP, or Simple IRA, this calculator by Fidelity can help. After going over some simple questions, users can review an analysis that shows the tax implications of the decision. That can be incredibly important for retirement planning, giving users information that can help them avoid a net loss.
Are Roth IRA Calculators Accurate?
It’s important to understand that, while the calculations made will typically be accurate, Roth IRA calculators don’t guarantee results. Some of the data is based on assumptions, such as your anticipated rate of return or expected contributions overtime. No one can be 100 percent certain when it comes to those factors. It always involves a guess.
However, that doesn’t mean a Roth IRA calculator isn’t a great planning tool. It gives you some insight into how much you could have set aside for retirement, and that is helpful. It’s just important to remember that no one knows what the future holds. Your account may end up higher or lower in the end, depending on unforeseen factors.
If you want to make sure you can meet your goal, be conservative when performing the calculations. Assume a slightly lower rate of return, for example. That way, you incidentally create a buffer in your plan, increasing the odds that you’ll hit your target before you retire.
Do you know of another amazing Roth IRA Calculator? If so, tell us about it in the comments below.
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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