Roth IRA suits low-income earners for tax benefits

A Roth IRA may be ideal for individuals in a low tax bracket, as they pay taxes now but can withdraw funds tax-free later. This is beneficial for those expecting to earn more in the future. For those focused on saving, a Roth IRA allows additional tax-advantaged contributions. In 2025, single filers can contribute up to $7,000 if their income is below $150,000, while married couples have a limit of $236,000. Near-retirees can benefit from a Roth IRA since it does not require minimum distributions during their lifetime. This flexibility allows them to decide when to withdraw funds, unlike traditional retirement accounts.