3 Reasons to Open a Roth IRA in 2021

Nearly 25 million people own Roth IRAs, according to the Investment Company Institute, but that's a far cry from the number of Americans who could contribute to one if they wanted. While a Roth IRA isn't the best retirement account for everyone, it has some distinct advantages that make it worth considering, especially for those who don't have a workplace retirement plan that matches contributions.

Here are a few reasons you should consider stashing some money in one this year.

While a workplace retirement plan is usually only open to employees, just about anyone can open and contribute to a Roth IRA. The only rule is that either you or your spouse must earn enough income throughout the year to cover the contributions you make to the account. So if you contribute $5,000 to your Roth IRA in 2021, you and/or your spouse must earn at least $5,000 in income this year.

Source Fool.com