Roth IRAs require you to pay upfront taxes in exchange for penalty-free withdrawals in retirement.
This gives you greater control over your retirement tax bill.
Some high earners can’t contribute directly to a Roth IRA.
While there’s no “best” retirement account for everyone, the Roth IRA is one of my favorites and is the first place I put my retirement savings each year. There are several reasons for this, but one stands out above all the rest.
Roth accounts have a unique feature that makes them a great choice for those who don’t want to worry about large tax bills in retirement. However, Roth IRAs also come with rules that prohibit some people from saving directly in one of these accounts.
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Roth IRAs require you to pay taxes on your contributions in the year you make them. In exchange, you’re allowed to withdraw money tax- and penalty-free in retirement. Generally, you must be at least 59 1/2 and have had a Roth account for at least five years before you can do this.
Tax-free withdrawals give you greater control over how much you pay in retirement taxes. If you find you’re nearing the top of your tax bracket, you can rely more upon Roth savings so you don’t jump up to the next one. That’s a huge benefit that can give you some much-needed peace of mind, especially when you don’t know what taxes will look like for you once you leave the workforce.
Adults under 50 can save up to $7,500 in a Roth IRA in 2026, while those 50 and up can save up to $8,600 this year. However, high earners may have lower limits or may not be able to save directly in a Roth IRA at all.
If you’re not able to make a Roth IRA contribution, you could try a backdoor Roth IRA, where you put money in a traditional IRA and then convert it to a Roth IRA. Or you could save money in a Roth 401(k) if your employer offers one. These are identical to traditional 401(k)s but are taxed like Roth IRAs and have no income limits.
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