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Your Finance Guide

Roth IRA

A Roth IRA is a retirement savings account where you contribute after-tax dollars. Your money grows tax-free, and qualified withdrawals in retirement are also tax-free. It's one of the most powerful retirement vehicles available.

2026 IRS Contribution Limits

Under 50$7,000
50 and Older$8,000
Income Limit (Single)$161,000 MAGI
Income Limit (Married)$240,000 MAGI

Key Details

Contributions can be withdrawn at any time without penalty (only contributions, not earnings).

Earnings can be withdrawn tax and penalty-free after age 59 1/2 and after the account has been open for at least 5 years.

No Required Minimum Distributions (RMDs) during the owner's lifetime, unlike Traditional IRAs.

Ideal for those who expect to be in a higher tax bracket in retirement.

You can contribute to a Roth IRA at any age as long as you have earned income.

If your income is too high, consider the Backdoor Roth IRA strategy.