Why a Roth IRA is so powerful
With a Roth IRA, your money grows completely tax-free and qualified withdrawals in retirement are also tax-free. This means decades of compound growth happen with no tax drag, and you pay no tax on the gains when you need the money most.
What is a Roth IRA?
A Roth IRA is funded with after-tax dollars. Growth and qualified withdrawals are completely tax-free, making it powerful for long-term compounding.
What is the Roth IRA limit for 2025?
$7,000 per year ($8,000 if age 50+). Phase-out begins at $150,000 (single) and $236,000 (married filing jointly).
Roth vs. Traditional IRA?
Traditional: deductible contributions, taxed withdrawals. Roth: after-tax contributions, tax-free withdrawals. Roth wins if you expect higher future tax rates.