Roth IRA Calculator — Arizona 2026
Calculate your Roth IRA tax-free growth as a Arizona resident. Arizona income tax rate: 2.5%. Roth IRA withdrawals are not taxed in Arizona.
Quick Answer
A $7,000 annual Roth IRA contribution starting at age 30 grows to approximately $1,338,000 by age 65 at a 7% return — 100% tax-free at withdrawal. Arizona does not tax Roth IRA qualified withdrawals. The 2026 limit is $7,000 ($8,000 if age 50+). Income phase-out begins at $150,000 MAGI (single) / $236,000 (married).
Your Roth IRA Details
Historical S&P 500 avg: ~10% nominal, ~7% real
Projected Balance at Age 65 — 35 Years
Balance at 65
$967,658
100% Tax-Free
Total Contributed
$245,000
Tax-Free Growth
$722,658
Monthly Income (4% rule)
$3,226
Your $7,000/year grows to $967,658 — all tax-free at withdrawal. The IRS cannot touch this money in retirement.
Growth Timeline
| Age | Year | Total Contributed | Balance | Tax-Free Growth |
|---|---|---|---|---|
| 30 | 2026 | $0 | $0 | $0 |
| 35 | 2031 | $35,000 | $40,255 | $5,255 |
| 40 | 2036 | $70,000 | $96,715 | $26,715 |
| 45 | 2041 | $105,000 | $175,903 | $70,903 |
| 50 | 2046 | $140,000 | $286,968 | $146,968 |
| 55 | 2051 | $175,000 | $442,743 | $267,743 |
| 60 | 2056 | $210,000 | $661,226 | $451,226 |
| 65 | 2061 | $245,000 | $967,658 | $722,658 |
Roth IRA in Arizona: Key Facts
State income tax rate: 2.5%
Roth IRA withdrawals taxed by Arizona: No — qualified withdrawals are tax-free
2026 contribution limit: $7,000 ($8,000 if age 50+) — same as all states
Income limit (single): Full contribution under $150,000 MAGI; phase-out $150,000–$165,000
Income limit (married): Full contribution under $236,000 MAGI; phase-out $236,000–$246,000
Arizona has a flat 2.5% income tax rate. Roth IRA withdrawals are not taxed in Arizona, so growth is tax-free at both the federal and state level.
Roth IRA FAQs — Arizona
Are Roth IRA withdrawals taxed in Arizona?
No — Roth IRA qualified withdrawals are not taxed in Arizona. Arizona has a flat 2.5% income tax rate. Roth IRA withdrawals are not taxed in Arizona, so growth is tax-free at both the federal and state level. This means your decades of compound growth are completely tax-free at both the federal and state level when you withdraw in retirement (after age 59½ and at least 5 years after the account was opened).
What is the Roth IRA income limit for Arizona residents in 2026?
The income limits are set federally and apply equally in Arizona: single filers can contribute the full $7,000 if their MAGI is under $150,000 (phase-out $150,000–$165,000). Married filing jointly: full contribution below $236,000 (phase-out $236,000–$246,000). Arizona has no additional state-level income restrictions on Roth IRA contributions. Source: IRS Revenue Procedure 2025-32.
How much should a Arizona resident contribute to a Roth IRA?
The maximum for 2026 is $7,000 ($8,000 if age 50+). If you can afford the maximum, contribute it — especially in Arizona where you pay 2.5% state income tax on contributions. Even $200/month ($2,400/year) invested starting at age 30 grows to approximately $460,000 by age 65 at 7% return, completely tax-free. Prioritize: 1) 401(k) up to employer match, 2) Roth IRA max, 3) 401(k) up to annual limit.
Is a Roth IRA better than a Traditional IRA for Arizona residents?
In Arizona with a 2.5% state income tax, the Roth IRA advantage is particularly strong: you pay Arizona taxes on contributions now, but all withdrawals — including decades of growth — are completely free from both federal and Arizona state taxes. The higher your state income tax rate, the more valuable tax-free Roth withdrawals become. For most people under 40 in the 22% or lower federal bracket, Roth is the better choice.
Can I have both a 401(k) and a Roth IRA in Arizona?
Yes — contributing to a 401(k) (or 403b, 457, TSP) does not affect your Roth IRA eligibility, as long as your income is within the Roth IRA limits. The 2026 401(k) limit is $23,500 ($31,000 if age 50+) and is completely separate from the $7,000 Roth IRA limit. The optimal strategy for most Arizona workers: contribute to your 401(k) up to the employer match (free money), then max your Roth IRA, then return to the 401(k) if you can save more.