How to Build a Million-Dollar Roth IRA If You Start Investing in 2024
Racking up $1 million in a Roth IRA might seem farfetched if you're just getting started. After all, the Roth IRA contribution limits were $6,000 in 2019, increased to $6,500 in 2023, and sit at $7,000 in 2024 for those under 50. However, joining the millionaire club is still possible, even with these relatively low contribution limits, thanks to the power of compounding and consistency.
Image source: Getty Images.
Roth IRAs receive a lot of attention because they allow you to contribute after-tax dollars now in exchange for tax-free withdrawals in retirement. So, if you amass a million dollars in your Roth IRA, it will be 100% tax-free as long as you're 59 1/2 and have satisfied the five-year rule.
Source Fool.com