A Roth IRA is a specialized Individual retirement account funded with after-tax-dollars that allows your investments to grow and be withdrawn completely tax-free in retirement. Assuming a standard individual contributor profile for 2026 here is how the account works and how to approach funding it.

2026 Contribution & Income Limits:

• Contribution Limits: $7,500 Annually ($8,600 if age 50 or older with catch-up).
• Single Income Phase-Out Full contribution under $153,000 MAGI; Phases out completely at $168,000 means that if you are a single tax filter and your Modified Adjusted Gross Income (MAGI) hit $168,000 you are completely phased out from making direct contributions to a Roth IRA.
• Married Filing Jointly Phase-out Full contribution under $242,000 MAGI; Phases out completely at $252,000