Roth IRA
Definition
A U.S. individual retirement account funded with after-tax money. Investments grow tax-free and qualified withdrawals in retirement are tax-free. Income limits apply to direct contributions.
Example
Someone early in their career who expects a higher tax rate later may prefer paying tax now through a Roth IRA.
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General educational information, not personal financial advice. See our disclaimer.
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· Investing
Roth IRA vs. Traditional IRA: Which Is Right for You
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