Frequently Asked Questions
What is the Roth IRA contribution limit for 2026?
For 2026, the Roth IRA contribution limit is $7,000 per year ($8,000 if age 50 or older). Income limits apply: full contribution if MAGI is below $150,000 (single) or $236,000 (married filing jointly).
When can I withdraw from a Roth IRA?
You can withdraw contributions (not earnings) anytime tax-free. After age 59½ and 5 years of account history, all withdrawals are tax-free. This makes Roth IRA ideal for retirement savings.
What is the 5-year rule for Roth IRA?
The 5-year rule means your Roth IRA must be open for at least 5 tax years before you can withdraw earnings tax-free. The clock starts January 1 of the year you make your first contribution. Even if you're over 59½, earnings withdrawn before 5 years are taxed.
Can I have both a 401(k) and a Roth IRA?
Yes, you can contribute to both a 401(k) and a Roth IRA simultaneously. The contribution limits are separate. This is a powerful combination: get the employer match in your 401(k), then max out your Roth IRA for tax-free growth.
What is a backdoor Roth IRA?
If your income exceeds Roth IRA limits ($150,000 single / $236,000 married), you can use the backdoor strategy: contribute to a non-deductible Traditional IRA, then convert to Roth. This is legal and widely used by high earners.
Roth IRA vs Traditional IRA: which is better?
Roth IRA is better if you expect higher taxes in retirement (pay taxes now, withdraw tax-free). Traditional IRA is better if you expect lower taxes in retirement (deduct now, pay later). Many financial advisors recommend having both for tax diversification.