The main advantage of a Roth IRA is that your money grows tax free, and when you withdraw in retirement, you pay no taxes. For example, consider a Roth IRA that starts with $6,000 and grows to $6,500. During retirement, you can withdraw the gain of $500 tax-free. Now, consider a non-IRA account like Cash App that starts with $6,000 and grows to $6,500. You will pay taxes when you withdraw the gain of $500.
These tax-free gains sound great, but the IRS only allows you to contribute a certain amount each year. It is important to contribute as much as you can each year, or you lose your opportunity for that year. For example, I can’t make a Roth IRA 2019 contribution in 2021.