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.

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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.

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Source Fool.com