Decoder · Accounts

Roth IRA

A retirement account you open yourself, at a brokerage or bank. You put money in after tax — and then, if you follow the withdrawal rules, the growth and retirement withdrawals come out tax-free. The 2026 contribution limit is $7,500 if you are under 50 ($8,600 at 50+), and higher incomes phase out the ability to contribute directly (2026: $153,000–$168,000 for single filers, $242,000–$252,000 for married filing jointly).

For your first $100: For most first-timers this is the famous 'first account'. Your first $100 goes in as a contribution — then you still have to choose what it holds. The account is the bucket, not the investment.

401(k), in plain words 403(b), in plain words Employer match, in plain words

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