I've Maxed Out My Roth IRA Every Year Since 2016. Here's What It's Worth Now

It was 2016 when I first learned what a Roth IRA was. I opened one immediately and committed to maxing it out -- $5,500 that first year.

Since then, I've repeated the max contributions every year. In total, I've contributed $55,000 to my Roth IRA, and as of today, that account is worth $111,732.

My plan is to keep going until there's $1 million in this account. It'll probably take me another 20-25 years, but I'm in no rush. Consistency and compound interest are doing the heavy lifting.

If you don't know what a Roth IRA is, today's your lucky day. Here's what I love about them, and why contributing to mine is a top priority every single year.

Why Roth IRAs are awesome

I was always hesitant to "lock up" my money in retirement accounts. What if I needed it back in a pinch?

That's probably my favorite thing about Roth IRAs: Any money you contribute, you can withdraw anytime, at any age, without taxes or penalties. The earnings and growth need to stay in the account until retirement, but your original contributions are always accessible.

Roth IRAs also come with some killer tax advantages. Every dollar you invest grows completely tax-free. So the bigger your account gets, the more powerful that tax-free growth becomes later in life.

Other things I love about Roth IRAs:

• No tax headaches: There's nothing to report on your taxes each year. All the money you put in you've already paid taxes on.
• They're not tied to an employer: You get to pick the broker, the funds, etc. so there's lots of flexibility.
• Easy to open, with low minimums: You can literally set up an account with just $50 to begin. Roth IRAs are perfect for beginner investors.
• No account fees, and access to great funds. Most top brokers offer Roth IRAs with no monthly fees and easy access to low-cost index funds (my personal favorite way to invest).

There are some rules and restrictions you need to follow, which I'll explain in a little bit. But for the most part, Roth IRAs are extremely simple.

I personally use Fidelity for all my investing accounts. There are no fees, and it connects easily with my bank for quick transfers. You can read my full Fidelity review here.

Becoming a Roth IRA millionaire

My vision is to one day have $1 million inside my Roth IRA. And I'm planning to get there with simple index funds.

I stick mostly to the total stock market index funds (Like Vanguard's VTI or Fidelity FZROX), because they're diversified far and wide, and have good historical performance. It's not flashy or exciting -- I'm building wealth the slow and boring way (and it's working out well so far).

Here's how my account could grow if I continue to invest $7,000 every year going forward, achieving an 8% average annual return (slightly less than S&P 500's historical average):

Of course, I can't predict the future. The stock market goes up and down, so a lot can happen over 20-30 years. But, in general I'm counting on continued growth over the long haul.

Roth IRA limits and rules for 2025 edition

While most people are eligible to open Roth IRAs, they're not available to everyone.

Here are the rules you need to know for 2025:

• Income limits: You can contribute to a Roth IRA if your income is under $165,000 (single tax filer) or $246,000 (married filing jointly)
• Contribution limit: In 2025 the maximum you can put into any IRA is $7,000 if you're under 50, $8,000 if you're 50 or older.
• Withdrawal rules: You can always withdraw your original contributions tax-free and penalty free. But you have to wait until age 59 1/2 to take out investment earnings without penalties.

These limits can shift slightly each year, so it's worth checking annually. But once you're in, the Roth IRA is one of the most flexible and tax-friendly tools out there for long-term growth.

Ready to grow your own tax-free wealth pile?

Honestly, I wish I knew about Roth IRAs sooner. That's why I preach to anyone and everyone to open an account ASAP and start putting money in.

If your goal is to build long-term, tax-free wealth for retirement, a Roth IRA is one of the smartest (and most underrated) tools out there. It's easy to open, low-stress to maintain, and incredibly powerful over time.

Looking for the right place to start? Compare the best Roth IRA brokers here to find one with low or no fees and easy investment options.