I opened two accounts to help grow my savings. Here’s what I learned as a Gen Z personal finance reporter

Roth individual retirement accounts require investors to pay taxes on the contributions they make now, rather than when they take withdrawals in their retirement years. That trade-off means after-tax dollars grow tax-free for decades.

A Roth can be a powerful tool for younger investors, who are often starting out their careers with lower salaries, putting them in lower tax brackets. And in all likelihood, they are in lower tax brackets than they’ll be later in their careers.

“For younger professionals, the Roth IRA is an incredible savings vehicle, because given our earnings, it’s very likely that we’re not being taxed at the highest rate,” said Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York.

Roth IRAs also tend to be great for younger savers because there are income limits on eligibility for single and married filers, he said.

Original contributions to a Roth IRA can be withdrawn at any time without penalties, serving as a great tool for long-term goals or short-term emergencies. However, there are penalties involved if you withdraw earnings from the account too early.

Here are three more key strategies I learned or was reminded of as I prepared to open a Roth IRA:

1. Investors can make prior year contributions before tax season ends: You have until the end of tax season, or April 15 this year, to save money in your Roth IRA that will count toward the prior tax year, experts say.

“If you’re between January [1] and April 15, you can technically make both a 2023 contribution and a 2024 contribution,” said CFP Tommy Lucas, an enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.

2. While you can’t get a deduction, you may qualify for a credit: Unlike a traditional IRA, you can’t get a tax deduction from Roth contributions. Yet, there is a perk that gets overlooked a lot, said Lucas: Roth savings count…