3 Good Reasons to Max Out Your Roth IRA in 2021
Contributing to a Roth IRA (individual retirement account) might not be top of mind -- especially when you have other financial obligations keeping you up at night. But if you want to unlock a stream of tax-free income during retirement, this retirement account is worth looking into.
The Roth IRA allows you to contribute after-tax dollars so you can enjoy a waterfall of tax-free income during retirement. For 2021, you can contribute up to $6,000 to a Roth IRA if you haven't turned 50 yet. The contribution caps are sweeter after your 50th birthday. You earn a special $1,000 catch-up contribution, allowing you to stash away a maximum of $7,000.
If you're wondering if it's worth your time to max out your 2021 Roth IRA, here are three reasons that might make your decision easier.
Source Fool.com
