"Most people learn about Roth IRAs too late. A Roth IRA is a type of retirement account that lets your money grow tax-free-and stay tax-free when you take it out later. You contribute money you've already paid taxes on, invest it, and if you follow the rules, every dollar it earns is yours to keep. But not everyone is eligible to contribute. The advantages are huge, but actually contributing is a bit of a Catch-22."
"That's right. If you make "too much money" the Roth IRA is off-limits, at least directly. The Roth IRA has earned its reputation as one of the best long-term financial tools out there. The problem is most people know it's good without knowing why. I didn't even know Roth IRAs existed until my late 20s, which felt embarrassing at the time. If you've got a little shame around not knowing how they work, that ends now."
A Roth IRA accepts after-tax contributions that grow tax-free and can be withdrawn tax-free in retirement if rules are followed. Contributions must come from earned income such as wages, salary, or self-employment earnings. The 2025 contribution limit is $7,000, or $8,000 for those 50 and older. Direct contributions phase out for higher incomes: around $150,000 to $165,000 for single filers and up to $236,000 for married couples in 2025. The Roth is especially powerful when started early, and high-income earners can still access Roth benefits via specialized strategies that should be handled with professional help.
Read at Substack
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