Roth IRAs are individual retirement accounts (IRAs) that allow workers to save money for retirement using after-tax dollars. This means taxes are paid on the contributions before they are added to the account. As a result, the funds are allowed to grow tax-free over time, enabling them to be withdrawn tax-free in the future. This tax strategy has made Roth IRAs a workhorse in modern retirement plans, especially for young savers, and surprisingly for baby boomers, as well.
As of the second quarter of 2025, 13.8 million people are now saving and investing for retirement through 17.8 million IRA accounts. And, when looking by generation, average contributions for Gen X and boomers have increased by 25% and 37%, respectively, from the second quarter of 2024, according to a 2025 Fidelity survey.
