A Roth IRA allows you to contribute after-tax dollars to an account that can be invested in stocks, mutual funds, or ETFs. Because contributions have already been taxed, investment earnings and withdrawals after age 59½ are tax-free. This differs from a traditional IRA<\/a>, which involves pre-tax contributions and taxed withdrawals.<\/p> There are limits to how much you can contribute annually. For tax year 2025, that amount is $7,000 if you are younger than 50 and $8,000 if you are 50 or older. And in order to contribute to a Roth IRA, your income must be below $236,000 for married couples filing jointly and $150,000 for those filing as single or head of household.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "Who Is a Roth IRA Good For?",
"acceptedAnswer": {
"@type": "Answer",
"text": " A Roth IRA is a good option for someone who thinks they are likely to be in a higher tax bracket during retirement than during their contribution years. Since contributions have already been taxed, you ideally want to be making those contributions when you are in the lowest possible tax bracket.<\/p> Roth IRAs are also a good option for someone who does not have an employer-sponsored 401(k) or who wants to contribute more than allowed for a 401(k). For example, tax year 2025 caps 401(k) contributions at $23,500, but if you want to contribute more than that, you also can open a Roth IRA, which limits contributions to $7,000.<\/span><\/p> Even if you aren't contributing the maximum amounts, you might still want both types of accounts. Many employers match 401(k) contributions, but only up to a certain amount. So, once you reach the limit for matching 401(k) contributions, you might want to contribute the rest of your retirement investments to a Roth IRA.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Can You Have Multiple Roth IRAs?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Yes, investors can have multiple Roth IRAs. Theoretically, there is no limit to how many one can possess, but whether or not you should own more than one depends on many factors. For example, having multiple IRAs can better diversify your retirement account holdings. Account holders can open a Roth IRA focusing on stocks and ETFs, as well as other Roth IRAs that are designed to hold other assets, such as gold<\/a> or Bitcoin<\/a>.<\/p> Additionally, eligible account holders whose Roth IRA balance exceeds the FDIC and SIPC coverage can open a new account to get back within coverage limits for individual accounts. Furthermore, having multiple Roth IRAs can make your estate planning easier by naming a different beneficiary for each Roth IRA. It's important to note that contribution limits are applied collectively, not separately to each account opened, meaning that a $7,000 contribution limit for those under 50, and $8,000 for those 50 and older, for 2025, applies to all accounts cumulatively.<\/span><\/p>"
}
}
,
{
"@type": "Question",
"name": "What Is the Best Roth IRA to Open?",
"acceptedAnswer": {
"@type": "Answer",
"text": " There are many Roth IRAs to consider, but finding the best one to open ultimately depends on your financial needs. Our research found that Fidelity was our top choice due to its $0 account minimums and fees, rich selection of research amenities, financial instruments, and more. However, Charles Schwab may be a good fit for beginners who value educational resources. <\/p> Those who want to automate their portfolio may want to consider either Wealthfront or Betterment. M1 is an excellent choice for active traders seeking automated tools. Additionally, we found Vanguard to be best for mutual funds, E*TRADE to be best for mobile users, and Interactive Brokers to be best for a wide range of financial assets. Anyone who qualifies to open a Roth IRA will benefit from its perks, which include tax-free growth and tax-free withdrawals during retirement. The account must meet the five-year rule<\/a>, and the individual must be 59½ years old or meet the requirements for a qualified distribution<\/a> for non-retirement needs. However, a Roth IRA is generally best for those who believe they will be in a higher tax bracket during retirement.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Is 30 Too Old for a Roth IRA?",
"acceptedAnswer": {
"@type": "Answer",
"text": " No, 30 is not too old for a Roth IRA. In fact, there is no age limit for opening a Roth IRA. Anyone with taxable income whose modified adjusted gross income (MAGI)<\/a> meets the requirements set by the IRS can open an account and contribute up to the tax year's contribution limits.<\/span> While it's best practice to start saving for retirement as early as possible, life happens. You should invest in your future regardless of your age.<\/p>"
}
}
,
{
"@type": "Question",
"name": "How To Pick a Good Roth IRA?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Picking a good Roth IRA will depend on your chosen brokerage platform. The IRS governs all IRAs, and the brokerage platforms must comply when offering such accounts.<\/span> However, various brokers may offer different features for Roth IRAs.<\/p> For example, while most brokers offer stocks, bonds, and ETFs, some may restrict which securities they offer, such as the type of fractional shares you can trade. Additionally, some brokers may charge fees or have transaction costs. Choosing the best Roth IRA would generally entail picking one with the lowest fees and the financial assets that better resonate with your investing style.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Companies We Reviewed",
"acceptedAnswer": {
"@type": "Answer",
"text": " We researched and reviewed 47 online brokers and digital wealth management platforms to find the best companies you see in the list above. Below is the full list of companies we researched, along with links to individual company reviews to help you learn more before making a decision: Ally Invest<\/a>, Charles Schwab<\/a>, ChoiceTrade<\/a>, E*TRADE<\/a>, eOption<\/a>, eToro<\/a>, Fidelity<\/a>, Interactive Brokers<\/a>, J.P. Morgan SDI<\/a>, Lightspeed<\/a>, Lime Financial<\/a>, Merrill Edge<\/a>, Public<\/a>, Robinhood<\/a>, SoFi Invest<\/a>, SogoTrade<\/a>, T. Rowe Price<\/a>, tastytrade<\/a>, TradeStation<\/a>, TradeZero<\/a>, Tradier<\/a>, Vanguard<\/a>, Webull<\/a>, Wellstrade<\/a> Titan<\/a>, Interactive Advisors<\/a>, Sofi Automated Investing<\/a>, Ally Invest Robo Portfolios<\/a>, Schwab Intelligent Portfolios<\/a>, Fidelity Go<\/a>, Wells Fargo Intuitive Investor<\/a>, J.P. Morgan Automated Investing<\/a>, Ellevest<\/a>, Vanguard Digital Advisor<\/a>, Wealthfront<\/a>, Betterment<\/a>, M1 Finance<\/a>, Merrill Guided Investing<\/a>, Sigfig<\/a>, Stash<\/a>, E*TRADE Core Portfolios<\/a>, Axos Managed Portfolios<\/a>, Acorns<\/a><\/p>"
}
}
]
} ] }
]
<\/p>"
}
}
,
{
"@type": "Question",
"name": "Who Benefits Most From a Roth IRA?",
"acceptedAnswer": {
"@type": "Answer",
"text": "
Online Brokers:
<\/p>
Digital Wealth Management Platforms:
<\/p>