"The Roth IRA is one of the most powerful savings tools available to investors looking to build their nest egg for retirement. Choosing between a Roth or traditional 401(k) product can be difficult for many households - particularly those who earn significant income in this environment. But the reality is that Roth plans are about as essential to many retirees as most other plans, due to the fact that income can be withdrawn from such plans on a tax-free basis in retirement."
"One of the big gripes many investors have with the Roth IRA program is that this is a program that's not available to everyone. That's right - if you make too much money, this isn't a retirement savings program for you. And given the boost inflation has provided to not only prices (but wages in many industries as well), it's clear that a growing divergence is building among those in the bottom quartile and those at the top."
Roth IRAs and Roth 401(k)s provide tax-free retirement income and rank among the best long-term savings options for investors. High earners face eligibility limits that increasingly exclude households as wages rise with inflation and prices diverge across income groups. 2025 full contribution eligibility caps set MAGI thresholds at $150,000 for single filers and $236,000 for joint filers, with phase-outs eliminating contributions at $164,999 for single filers and $250,999 for joint filers. Millions of Americans are retiring annually, increasing urgency for accessible retirement vehicles. Policy adjustments to contribution limits and phase-out rules could better accommodate current economic conditions.
Read at 24/7 Wall St.
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