The Roth IRA just turned 20, and akin to many 20-year-olds, it has never looked quite so good. Though you cannot take tax deductions for contributions to your Roth, money in the account grows tax-free and the withdrawals are tax-free as well. If you had started contributing the allowable maximum to your Roth IRA at its inception twenty years ago, it would now have nearly $200,000 in tax-free savings. The passage of the Tax Cuts and Jobs Act makes Roth contributions even more attractive right now, as the current tax rates are relatively low with expectations they will rise in the future.
See Kimberly Lankford, New Tax Law Makes Roth IRA More Appealing to Savers, Kiplinger, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
