A Roth IRA offers tax-free withdrawals in retirement, making it a popular choice. Contributions can be withdrawn tax-free anytime, with earnings withdrawals subject to penalties. Income limits apply, but anyone with earned income can contribute. Online brokers offer high-return investment options like stocks and ETFs for Roth IRAs.

Withdrawals from a Roth IRA are tax-free at retirement age, provided five years have passed since the first contribution. Contribution limits for 2026 are $7,500, with an additional catch-up contribution for those 50 and older. Contributions can be made until the April tax deadline, with limits based on earned income.

Roth IRAs are a great rollover option for Roth 401(k) accounts, allowing more investment flexibility. Income and contribution limits apply, varying for single filers, head-of-household filers, and married-filing-jointly taxpayers. The income limits are adjusted annually and can impact direct contributions to a Roth IRA.

Traditional IRAs offer pre-tax contributions and tax deductions, with no income restrictions for opening one. Income limits apply for tax deductions if you have a retirement plan at work. Spousal IRAs allow non-working spouses to contribute. A backdoor Roth IRA is an option for those exceeding income limits.

Investments in a Roth IRA can range from low-risk bonds to high-risk stocks, with potential for significant returns over time. Retirement advisors often recommend prioritizing 401(k) contributions for employer matches before maxing out a Roth IRA. Market fluctuations can impact Roth IRA performance, but safer investments are available.

Read more at Yahoo Finance: What is a Roth IRA? How they work, contribution limits and who can open one