What’s hotter than a maxed out Roth IRA (or backdoor Roth IRA)?
An extra $500 in your Roth for 2026.
Why?
Because that extra $500 can make you an extra $120,000+ in retirement.
Don’t believe me? Let’s break it down.
Every year, the IRS evaluates the annual limits you can contribute to a Roth IRA (or backdoor Roth IRA). In 2025, that limit was $7,000.
But a few weeks ago, the IRS announced they’re increasing that limit to $7,500 in 2026.
That means, to max out your Roth IRA in 2026, you’d need to contribute $625/month ($7,500 / 12). Which I highly recommend you do if you’re able to.
If you invest that extra $500 over the entire year — if you do that for the next 30 years, you’d have an extra $120,000+ in your account.
That breaks down to just $41.67/month!🤯
We can prove this by running the numbers in a compound interest calculator like the one at Investor.gov.
In this example, we’re going to assume a very conservative annual rate of return of 8%. For context, over the last 100 years, the S&P 500 has averaged 10.6% in annual returns.
Investor.gov Compound Interest Calculator
And the results are IN…!
Investor.gov Compound Interest Calculator
And the icing on the cake? You’ll only have contributed $21,760 of your own money to get $126K+!
This is why I absolutely LOVE investing and how it’s the easiest way for every day people to build incredible wealth.
So, if you haven’t started planning yet, I hope this article gives you the push you need to make sure you find an extra $42/month to invest in your Roth IRA next year. That’s literally one tank of gas, a couple trips to Starbucks, or less than three months of Netflix.
Worth it?
Hell yeah!
If you don’t yet have a Roth IRA, I’d highly recommend opening one for free today. I personally use Fidelity for most of my investments, but Vanguard and Charles Schwab are also solid choices with decades of reputable service.
You might also be able to open one through your employer — be sure to ask!
Action Items
Open a free Roth IRA (or backdoor Roth IRA if you exceed the regular income limits)
Contribute $583/month to ensure you hit $7,000 in annual contributions
Adjust your budget now so you can put in an extra $42/month ($500/year)
Hope that helps!
If you’re still unsure, or have questions — reply to this email. I read and do my best to respond to every one.
Your friend,
Charlie | Your Wealth Hype Girl
Disclaimer: Not financial advice. For educational purposes only.