Roth IRA
A retirement account you fund with after-tax dollars. The money grows tax-free and qualified withdrawals in retirement are tax-free — you pay the tax now so you never pay it again on that money.
By Findley's Finance · Last reviewed: September 2026
Why it matters
The Roth IRA is the best deal in the tax code for most young earners: you are likely in a lower bracket now than you will be later, so paying tax today is cheap. For 2026 the contribution limit is $7,500 ($8,600 if 50+), and eligibility phases out at higher incomes. The tradeoff versus a Traditional IRA is simple — Roth wins if your tax rate in retirement will be higher than today.