Roth IRA
An individual retirement account funded with after-tax money. Growth and qualified withdrawals are tax-free, but eligibility is limited by income.
In 2026 you can contribute up to $7,500 ($8,600 if you're 50 or older) across all your IRAs, but not more than your earned income. The limit phases out between $153,000 and $168,000 of modified AGI for single filers and $242,000 to $252,000 for married couples filing jointly.
You can withdraw your contributions (not earnings) at any time without tax or penalty. Earnings are tax-free after age 59½ once the account has been open five years. Roth IRAs have no required minimum distributions for the original owner.
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Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.