Mark Kohler shows how a Roth IRA turns $7,500 yearly into over $1 million tax-free in 20 years. At a 15% annual return, consistent contributions of about $600 a month compound dramatically. The 2026 limit is $7,500, or $8,600 if you're 50 or older with the catch-up.
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As you start to build your wealth and build your future, do not underestimate the power of the Roth. The Roth IRA isn't just about saving money. It's about controlling future tax exposure. And for 2026, the IRA contribution limit is $7,500 with an additional $1,100 catch-up if you're 50 or older. But when you invest consistently over 20 or 30 years, that little annual contribution can become a serious tax-free bucket. I was just doing some math right here before I shot this video. I took $7,500 is your initial contribution and $8,000 a year, which it's adjusted for inflation. That'll go up. If you just did $7,500 this year, $8,000 every January for the next 20 years and had a 15% rate of return, you'd have over a million dollars tax-free in 20 years. That's just $7,500 a year, about $600 a month of small incremental get rich slow investing.