What is the Roth IRA contribution limit for 2025?

For 2025, the Roth IRA contribution limit is $7,000 ($8,000 if age 50+). Income limits apply: single filers phase out at $150,000–$165,000 MAGI; married filing jointly at $236,000–$246,000. Above these limits you can use a Backdoor Roth IRA (traditional IRA contribution then conversion).

Roth IRA vs 401(k) — which is better?

Roth IRA: tax-free withdrawals in retirement, no RMDs, more investment flexibility, lower contribution limit. 401(k): higher contribution limit ($23,500 in 2025), employer match is free money, pre-tax reduces today's taxes. Best strategy: contribute enough to 401(k) to get full employer match → max Roth IRA → then back to 401(k).