What is a Roth IRA and who is eligible?
A Roth IRA is an individual retirement account funded with after-tax dollars. Contributions grow tax-free and qualified withdrawals after age 59½ are completely tax-free — including all the growth. The 2025 contribution limit is $7,000 ($8,000 if age 50+). Income limits apply: for 2025, single filers earning above $161,000 and married filers above $240,000 are phased out. If you earn too much, a 'backdoor Roth IRA' strategy may still allow you to contribute — consult a tax professional. Roth IRAs also allow you to withdraw your contributions (not earnings) at any time penalty-free, making them a flexible tool for long-term investors. Compare Roth vs. Traditional IRA at wealthserene.com/tools/roth-vs-traditional.
Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →