2026 income limits matter
Roth contribution eligibility phases out with modified AGI and filing status; the annual contribution also cannot exceed eligible compensation.
2026 Roth contribution and tax-free growth plan
Test eligibility, accumulation, access, and conversion—not only the ending balance
Apply the 2026 income phase-out, compare tax-free growth with a taxable account, estimate a nonqualified withdrawal, and inspect a Roth conversion scenario.
Plan with context
A Roth IRA decision begins with eligibility and ends with spendable tax-free value.
The account’s benefit depends on income eligibility, contribution timing, investment drag, holding periods, distribution ordering, future tax rates, and whether conversion tax is paid from outside funds.
Contributions leave first
Regular Roth contributions generally come out before earnings, which creates access flexibility that a simple retirement-balance model misses.
Qualified earnings need two tests
Tax-free earnings generally require both an eligible distribution event and satisfaction of the applicable five-year rule.
Taxable comparisons need tax drag
The same gross return can produce a lower taxable balance when dividends, interest, or realized gains create taxes along the way.
Conversions have an upfront bill
A taxable conversion creates income now but moves future qualified growth into the Roth environment; paying tax from the IRA reduces the amount converted.
Future tax rates change the choice
A higher future marginal rate can improve a conversion’s relative value, while a lower rate and short horizon can favor continued deferral.
Included
2026 filing-status phase-outs and limits, current basis, contribution growth, returns, fees, taxable-account drag, inflation, withdrawal ordering estimate, five-year and age test, conversion comparison, Chart.js visuals, and annual ledger.
Not included
Earned-income validation, spouse IRAs, backdoor pro-rata aggregation, conversion-specific five-year clocks, distribution exceptions, Saver’s Credit, tax brackets, Medicare premiums, state tax, or market volatility.
Use it well
Verify MAGI and eligible compensation, preserve contribution records, compare current and expected tax brackets, and pay conversion tax from outside funds when practical.