Benefits of maxing out a Roth IRA

The following infographic will demonstrate the benefits of maxing out a Roth IRA. Please share this with your family and friends!

[Update] Since we created this infographic the contribution limits have increased from $5,500 to $6,000 so even more money can be raised!

Also see: We have built our own Compound Interest Calculator to save you the trouble of having to download one. We’ve even made improvements on that by creating a Habit Calculator to demonstrate the cost of many habits. We look forward to speaking more about Roth IRAs and Compound Interest in our Season Two content: Dollar School.

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For more information about what compound interest is and how it works you can watch this video.

Here are some details on rules regarding a Roth IRA via https://www.irs.gov/retirement-plans/roth-iras:

A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA.

  • You cannot deduct contributions to a Roth IRA.
  • If you satisfy the requirements, qualified distributions are tax-free.
  • You can make contributions to your Roth IRA after you reach age 70 ½.
  • You can leave amounts in your Roth IRA as long as you live.
  • The account or annuity must be designated as a Roth IRA when it is set up.

The same combined contribution limit applies to all of your Roth and traditional IRAs.

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