How to Build a Million-Dollar Roth IRA if You Start Investing in 2026

Many people have long assumed that amassing a million-dollar portfolio is an out-of-reach, unrealistic goal. Well, it's not. Getting to a million does take some work -- and a lot of diligence -- but it's very possible for many of us.

Here's a look at how you might get there using a very handy, tax-advantaged tool -- the Roth IRA.

Image source: Getty Images.

Meet the Roth IRA

There are two main kinds of IRAs -- and 401(k)s, too, for that matter -- the traditional and the Roth. With traditional accounts, you contribute pre-tax dollars and receive an upfront tax break; those contributions are deducted from your taxable income, reducing your tax bill for the year of your contribution.

Roth accounts are, arguably, even better: You contribute post-tax dollars to them, meaning you get no upfront tax break. But if you follow the rules, that money can grow in your Roth account, and money from the account can be withdrawn later, ideally in retirement, tax-free.

That can be a big deal if your account grows to a hefty size by retirement. And IRAs can grow to hefty sizes -- Warren Buffett's investing lieutenant Ted Weschler grew his to $264 million! Most of us are not as investing-savvy as Mr. Weschler, so we may not amass $264 million. But $1 million? That's possible!

Here are some things to know about Roth IRAs:

• The contribution limit for 2026 is $7,500, and those aged 50 or older can chip in an additional $1,100, bringing their limit to $8,600.
• There are income limitations for contributing to Roth IRAs, disqualifying high earners.
• You can convert money from a traditional IRA to a Roth via a "backdoor" conversion. This can help high earners fund Roth IRAs.
• Withdrawals can be made without penalty after you've had the account for five years and once you reach age 59 1/2.
• There's no penalty if you withdraw your contributions (but not their earnings) early -- though it's often a financially harmful thing to do.
• You don't ever have to withdraw your money. You can leave it to a charity or loved one if you don't need to tap it in retirement.

How your money can grow in a Roth IRA

The table below shows how your money can grow in a Roth IRA or some other investment. I used an 8% growth rate because the overall stock market has averaged annual gains of close to 10% over long periods -- and it might average less (or more) than that over your particular investing period.

Source: Calculations by author, via Investor.gov.

Per the table above, it will take a long time to get to a million dollars if you're only investing that $7,500 annually. (Of course, contribution limits will likely increase over time, so you can chip in more to your account in the future.)

Here are some ways you can get to a million dollars faster:

• If you're married, both you and your spouse can max out your contributions. The $15,000 column in the table above shows how much faster you can reach millionaire status.
• If the investing gods smile upon you, your portfolio might grow, on average, at a faster rate than 8%.
• You can invest in other accounts along with your Roth IRA -- such as a 401(k) account and/or a simple, taxable account at a good brokerage.
• If you have trouble coming up with $7,500 or $15,000 (or more) to invest each year, you might consider taking on a side gig for a short or long while, to bring in more money to invest.

How to invest to become a millionaire

So, how should you invest your money in order to become a millionaire? Well, you could focus on growth stocks, which can grow much faster than the overall market, but plenty of them are overvalued when you invest and some will flame out. Also, should the market pull back for a while, growth stocks can fall harder than their counterparts. If you take this route, we recommend investing in at least 25 companies and aiming to hold for at least five years.

A less risky and still powerful strategy is just to invest in one or more simple, low-fee index funds, such as these:

• Vanguard S&P 500 ETF (NYSEMKT: VOO)
• Vanguard Total Stock Market ETF (NYSEMKT: VTI)
• Vanguard Total World Stock ETF (NYSEMKT: VT)

There are other great index funds, too.

However you go about it, make sure you have a solid retirement plan and that you're socking money away for your future. Consider making good use of a Roth IRA, too.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.