While Roth IRAs off er a host of tax and economic benefi ts, most doctors have grossly underutilized them. Fewer than 5% of U.S. dentists reach the goal we set for our clients of accumulating at least $1,000,000 in their Roth IRA by age 70, missing out on savings that can total hundreds of thousands of dollars. Here’s how to take full advantage.

Roth IRA Tax Benefits

While contributions to Roth IRAs are non-deductible (made with after-tax dollars), earnings grow tax-free and can be withdrawn tax-free any time after the later of age 59 ½ and at least five years after opening the IRA. Furthermore, amounts contributed to Roth IRAs (principal) can be withdrawn tax-free at any time, making it an ideal backup emergency fund. Also, neither Roth IRA earnings nor withdrawals are subject to the 3.8% Obamacare