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.


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