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Personal finance expert Suze Orman has long championed Roth retirement accounts as one of the most powerful tools for building wealth. In her 2022 book The Ultimate Retirement Guide, Orman emphasized that Roth accounts grow tax-free and avoid required minimum distributions during the original owner’s lifetime. These two features set them apart from traditional retirement accounts.
The advice resonates because it’s straightforward: pay taxes now, enjoy tax-free withdrawals later. For retirees worried about tax uncertainty or leaving assets to heirs, the simplicity is appealing.
Where Orman Gets It Right
The tax-free growth advantage compounds dramatically over time. A modest S&P 500 investment from a decade ago would have nearly quadrupled in value. The real difference emerges at withdrawal, where a taxable account surrenders roughly 15% to capital gains taxes while a Roth account preserves every dollar. That difference doesn’t just represent savings—it represents money that stays invested and continues compounding in your favor, creating a widening gap between the two account types over decades.
The no-RMD feature matters too. Traditional IRAs require withdrawals starting at age 73 under current rules, forcing retirees to take taxable distributions whether they need the money or not. Roth IRAs impose no such requirement, allowing assets to compound indefinitely and making them ideal for estate planning.
Inflation adds urgency to the tax-free growth story. At the Federal Reserve’s 2% target rate, a 30-year retirement sees purchasing power cut nearly in half. Roth accounts help you stay ahead of that erosion without creating new tax obligations that further drain your resources.
What the Advice Leaves Out
Orman’s guidance assumes you’re better off paying taxes now rather than later. That’s not always true. If you’re currently in a high tax bracket but expect to be in a lower one during retirement, a traditional IRA or 401(k) might deliver better after-tax results.
The catch is access. Annual Roth IRA contributions max out at $7,500 for most savers in 2026, rising to $8,600 for those 50 and older. High earners face steeper barriers. Single filers making over $168,000 lose the ability to contribute directly, forcing them to use backdoor conversion strategies instead.
How to Think About This Advice
Roth accounts are genuinely powerful, especially for younger savers with decades of tax-free compounding ahead or high earners who expect taxes to rise. But they’re not universally superior. Before converting traditional retirement funds to a Roth or prioritizing Roth contributions, ask yourself: Will my tax rate in retirement likely be higher or lower than today? The answer determines whether Orman’s advice fits your situation.