The Retirement Account You Should Have, According to Tony Robbins
Written by
John Schmoll
Edited by
Jenna Klaverweiden
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Saving for retirement is challenging for many Americans. On top of finding money to save, it can be difficult to know what retirement account option is best to use. Traditional and Roth IRAs are two of the most popular types of retirement accounts, each with pros and cons.
As reported by TheStreet, acclaimed financial guru Tony Robbins is a proponent of Roth IRAs. Here’s why the entrepreneur advised opting for a Roth IRA when possible and some additional benefits of this retirement account.
To Maximize Tax Savings
Taxes are an inevitable part of the lives of most Americans. The government also wants to have a role in our retirement savings. Robbins was pessimistic about the role taxes will play in the future for most Americans.
Robbins explained that taxes will likely increase over the years, per TheStreet, so a Roth IRA could be a good option. Roth contributions don’t enjoy tax benefits today, but qualified distributions are tax-free. Alternatively, traditional IRA distributions are taxable.
That’s not to say Americans should avoid traditional 401(k) contributions. Robbins argued that taking advantage of an employer-sponsored 401(k) effectively covers taxes for you.
To Manage Future Healthcare Costs
Healthcare costs are an inescapable expense for most Americans during retirement. An average 65-year-old who retired in 2024 could expect to spend $165,000 in healthcare needs during retirement, according to Fidelity.
It’s reasonable to assume that figure will increase over time, not to mention inflation in other areas of life. As TheStreet reported, Robbins noted that since taxes will only increase over time, a Roth IRA could be beneficial.
Roth contributions grow tax-free, helping eligible Americans optimize their tax responsibilities and care for future needs without the threat of taxation.
To Have More Flexibility
Roth IRAs also arguably provide more flexibility than a traditional IRA. Traditional IRAs have required minimum distributions (RMDs) once Americans turn 73. Those distributions are taxable. Roth IRAs don’t have this feature.
Plus, as Robbins noted on his website, Roth IRAs are more flexible when it comes to early withdrawals. For savers needing to withdraw funds from a Roth IRA early, qualified distributions can be done tax-free, though Robbins recommended against that if possible.
However, there are income limits to contribute to a Roth IRA. For individuals, the modified adjusted gross income must be under $150,000 for 2025 to be able to contribute the full amount to a Roth. That limit increases to $236,000 for married couples filing jointly.
Planning for retirement is essential for Americans wanting to enjoy their golden years. Time in the market is a vital component of growing savings, but selecting a Roth IRA can be a beneficial tool to enhance savings. A Roth lets savings grow tax-free, allowing people to better manage taxes upon retirement.
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