A Roth IRA is a retirement savings account that offers tax-free growth and tax-free withdrawals in retirement. Contributions to a Roth IRA are made with after-tax dollars, which means they are not deductible from your current income. However, qualified withdrawals from a Roth IRA are tax-free, which can provide a significant tax savings in retirement.
Roth IRAs are a great way to save for retirement for a number of reasons. First, they offer the potential for tax-free growth. This means that your investments can grow faster than they would in a traditional IRA, which is taxed on a deferred basis. Second, Roth IRAs offer tax-free withdrawals in retirement.
