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How Quickly Can You Become a Millionaire by Maxing Out Your IRA?

If you want to retire a millionaire, funding an IRA is a great place to start. IRAs, or individual retirement accounts, are an invaluable investing tool because they’re tax-advantaged. Plus, because they’re set up and funded by you as an individual, you can save for retirement independently of your employer.

Whether you’re funding a Roth IRA, a traditional IRA, or a combination of both, you’re allowed to contribute up to $6,000 a year in 2020. If you’re 50 or older, you can make an additional $1,000 catch-up contribution, so your limit is $7,000. Here’s how long it would take you to become a millionaire if you maxed out your IRA every year using the 2020 limits.

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