Question 1

What is the Roth IRA contribution limit for 2026?

Accepted Answer

The 2026 Roth IRA contribution limit is $7,000 ($8,000 if you are age 50 or older). You can only contribute if your income is below the phase-out threshold: $150,000–$165,000 for single filers and $236,000–$246,000 for married filing jointly.

Question 2

What is the difference between a Roth IRA and Roth 401k?

Accepted Answer

A Roth IRA is an individual account you open yourself with any brokerage. A Roth 401k is offered through your employer. Key differences: Roth IRA has lower contribution limits ($7,000 vs $23,500), more investment choices, and no required minimum distributions (RMDs) during your lifetime.

Question 3

When can I withdraw Roth IRA money tax-free?

Accepted Answer

Qualified Roth IRA withdrawals are tax-free and penalty-free if you are at least 59½ AND the account has been open for at least 5 years. You can withdraw your contributions (not earnings) at any time without tax or penalty — only earnings have the age/5-year restriction.

Question 4

Can I contribute to both a 401k and Roth IRA?

Accepted Answer

Yes. The 401k and IRA limits are completely separate. You can max out your 401k ($23,500 in 2026) and also contribute to a Roth IRA ($7,000) in the same year, as long as your income is within the Roth IRA limits.

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