Roth IRA emerges as top retirement account choice for 2025 with new income limits
fool.com —
A Roth IRA is highlighted as a preferred retirement account for 2025 due to its tax benefits. Contributions are made with after-tax money, allowing for tax-free withdrawals in retirement, which can lead to significant savings compared to traditional accounts. Unlike 401(k)s, a Roth IRA offers a wider range of investment options, allowing individuals to tailor their portfolios to their financial goals. The contribution limit for 2025 is $7,000, with an additional $1,000 for those aged 50 and older. Starting in 2025, income limits will apply for Roth IRA contributions. Single filers can earn up to $165,000, while married couples filing jointly can earn up to $246,000. Contributions may be reduced if income falls within the phase-out range.