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Roth IRA Savings Calculator
Creating a Roth IRA can make a big difference in your retirement savings. There is no tax deduction for contributions made to a Roth IRA, however all future earnings are sheltered from taxes. The tax shield is better than a Variable Annuity or a Traditional IRA that only provide tax deferred growth. The Roth IRA provides truly tax-free growth.
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Definitions
 
Expected rate of return: The annual rate of return for your IRA. This calculator assumes that your return is compounded annually and your contributions are made at the beginning of each year. The actual rate of return is largely dependant on the type of investments you select. For example, from January 1970 to February 2003 the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11%. Savings accounts at a bank pay as little as 2% or less.  It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volitility.  The actual rate of return on investments can vary widely over time, especially for long-term investments.  This includes the potential loss of principal on your investment.
Current age: Your current age.
Age of retirement: Age you wish to retire. This calculator assumes that the year you retire you do not make any contributions to your IRA. So if you retire at age 65, your last contribution is assumed to have happened when you were actually 64.
Marginal tax rate: The marginal tax rate you expect to pay on your taxable investments.
Roth total at retirement: Total value in your Roth IRA at your retirement.
Total taxable savings: The total amount you would have accumulated by retirement in a taxable savings account.
Information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.