Lesson · Facts First
The Roth IRA
Fund it with after-tax dollars today, and qualified withdrawals decades from now - growth included - are tax-free.
The facts
- 01For 2026 the IRA contribution limit is $7,500, plus a $1,100 catch-up at age 50 and older (IRS Notice 2025-67).
- 02Direct Roth contributions phase out at higher incomes - above the threshold you contribute to a Traditional IRA and convert ("backdoor Roth"); conversions are taxable only to the extent of pre-tax dollars.
- 03Qualified distributions require the account to be at least 5 years old and you to be 59½ or older (or a first-home, disability, or death exception) - IRC 408A.
- 04Roth accounts have no lifetime required minimum distributions for the original owner - the strongest tax-free compounding vehicle the tax code offers.
Sources
- IRS Notice 2025-67 (2026 IRA limits)
- IRC Section 408A
- IRS: Roth IRAs - distributions
Educational content only — not tax, legal, investment, or VA-benefits advice. Figures verified against the cited sources for 2026; confirm your own situation with a qualified professional before acting.
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