What is Roth IRA?

Roth IRA

Roth IRA is a flexible individual retirement account with superb tax benefits. Roth IRA is very similar to traditional IRAs. What makes Roth IRA special is the following:

1. Contributions (the money you put in an account) are not tax deductible
2. Qualified distributions (the money you withdraw when you retire) are tax free.

Basically, you pay income tax from your earnings and make a contribution with post-tax dollars. Your money grows tax-free. You do not pay tax when you withdraw your money.

Roth IRA is just a holding account. It is like a bucket, in which you can put almost any type o

f investment you want. Your Roth IRA may be invested in stocks, bonds, mutual funds, certificates of deposits, and/or money market accounts.Roth IRA can be set up at  banks, credit unions, mutual fund companies, and discount brokerage houses. That is all for roth ira folks.