What is a Roth IRA?

Answer:
A Roth IRA is an individual retirement account

that is similar to a Traditional IRA but with certain differences. Unlike a traditional IRA, which is pretax or tax deductible, a Roth IRA is paid into after taxes have already been taken out.

This means that if you invest in a Roth IRA, when you withdraw the money (after you have retired), it will not be taxed since the taxes were paid when the money was earned, before it was put into the Roth IRA account. It is even possible to withdraw the earnings from the Roth IRA investments without a tax penalty in certain situation.


	more Q&A sessions like this
	What is a Traditional IRA? What is an IRA? What are Qualified Annuities? What are Retirement Annuities? What is a SIMPLE IRA? What Is A 401(K)? What is a Rollover? What is an IRA? What is a Qualified Retirement Plan? What is Retirement Plan withholding? What is a Severance Package? What Are Some Good Jobs for Seniors? What are some Good Jobs for Retirees? Who will replace Bob Barker on The Price is Right? What is a Bungalow Style house? What is a Tidewater House style? What is a Tax Shelter?