Roth IRA

A Roth IRA is a type of retirement savings account that allows you to save money on a tax-free basis. You contribute after-tax income, meaning you've already paid taxes on the money you deposit. The key benefits are that your investments grow tax-free, and you can withdraw your contributions (but not earnings) anytime without penalties. After age 59½, you can take out both contributions and earnings tax-free if the account has been open for at least five years. This makes it an attractive option for long-term savings and tax planning in retirement.