Roth IRA
A Roth IRA is a retirement account you fund with after-tax money, so qualified withdrawals in retirement — including all the growth — are completely tax-free. You get no deduction now, but decades of compounding come out untaxed, and there are no required minimum distributions during your lifetime.
The 2026 limit is $7,500, or $8,600 with the age-50 catch-up, and direct contributions phase out at higher incomes — though the backdoor route remains open, since the limit applies to contributions and not conversions. A point most comparisons miss: when your tax rate is the same now and later, a Roth and a traditional IRA produce mathematically identical results. The real Roth advantage is that the limit applies to the nominal contribution, so a full $7,500 shelters everything it grows into rather than an after-tax equivalent. Contributions — not earnings — can be withdrawn at any time without tax or penalty, making it a genuine backup, and there are no required minimum distributions during your lifetime.
Put it to work
Roth IRA Calculator
Project your Roth IRA's tax-free value at retirement and see how much of it is earnings you'll never pay tax on. Uses the 2026 limit of $7,500.
Retirement Calculator
Project your retirement savings: what your balance could reach by retirement age and the monthly income it could sustainably provide.
Compound Interest Calculator
See how your savings grow with compound interest and monthly contributions — final balance, interest earned, and a year-by-year growth table.