I am 20 years old, I make around $30K a year, this is just an entry job so I hope to be making more in a few years. I was researching Roth IRA's and I was just a little curious how they work, and if it would be a smart decision to get one? I currently have $6K in my savings account that is seperate from my emergency funds/normal accounts.
My career passion doesn't exactly pay the big bucks, I would say I could get up to $50K yearly in 5 years or so. Which is why I would like to do what I can at my current age to make my financial situation firm when I have a family in the future.
I guess my question is how does a Roth IRA work exactly? From what I read I gather that I could put up to $5500 into an Roth IRA? Is that the max I can contribute? Or is it a yearly thing? I could be way off, any advice or sources you can point me to would be greatly appreciated.