If you’re a member of Gen Z, you have probably heard at least one older person in your life tell you to open a Roth IRA. If you didn’t take this advice to heart, we’re here to repeat the message: This retirement account can be a game-changer later in life by providing you with hundreds of thousands—or even millions—of dollars in tax-free retirement funds.
The popularity of Roth IRAs is growing, especially among young people. The percentage of households headed by someone in their 20s with a Roth IRA nearly tripled from 6.6% in 2016 to 19.2% in 2022, according to data from the U.S. Federal Reserve analyzed by Boston College’s Center for Retirement Research (CRR).
