Individual retirement accounts (IRAs) are a widely used way to put money away for retirement. There are a variety of IRA options. A Roth IRA, for one, lets you grow your savings without paying taxes on the money you earn when you withdraw it in retirement. But a Roth IRA is just one of a number of choices, and you might want to use a Roth IRA calculator to determine if this is the right type of account for you.
A good place to start is the Bankrate Roth IRA calculator. With this Roth IRA calculator, you enter information (for instance, your starting balance, your expected annual contribution, your current age, and expected retirement age). The calculator then provides a chart showing how much you would have at the time of your planned retirement, based on those assumptions - and how much of that total will be tax-free earnings.
There are other Roth IRA calculators from Bankrate that you might find helpful, depending on your situation. These include:
This calculator helps you to compare these two types of IRAs, and project what you would earn with each type-after taxes-by the time you reach retirement.
In general, you have the option to convert a traditional IRA to a Roth IRA, but you need to weigh the pros and cons of each approach. This Roth IRA calculator can help you understand how your IRA holdings will grow in each, taking into account your expected tax rates.
There's also plenty of other websites out there that have useful Roth IRA tools and calculators. For example, Ally Bank has a Compare IRAs tool that gives you an at-a-glance look at these IRA products, as well as the current interest rates offered by other banks.
Get the skinny on all this and more at AllyBank.com or call customer care at 877-247-ALLY (2559), where live help is available anytime, 24/7.