Of course, any return you get in a Roth IRA depends on the investments you make in it, but historically these accounts have achieved, on average, a return of between 7 and 10%. Here's what you need to know about the average return on a Roth IRA and how it can help you maximize your retirement savings. Contributing to a traditional IRA can generate a current tax deduction and, in addition, allows for tax-deferred growth. While long-term savings in a Roth IRA may result in better after-tax returns, a traditional IRA can be an excellent alternative if you qualify for a tax deduction.
Use this traditional IRA calculator to see how much you could save with a traditional IRA. The idea that a Roth IRA is just an instrument for your investments doesn't mean that all Roth IRAs are created the same way. However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age.