Roth IRA

A Roth IRA is an Individual Retirement Account which provides tax-free growth for the money you save today. Roth IRA is named after late Senator William V. Roth, Jr. The plan was introduced on January 1, 1998 as a result of the Taxpayer Relief Act of 1997.

You can open a Roth IRA account through a stockbroker, mutual fund, or other provider of "normal" investment accounts. If you have a large employer, chances are that your company offers a Roth IRA account in-house or through a partner brokerage firm.

The Roth IRA retirement savings provide the benefit of "TAX FREE EARNINGS" when you or your beneficiary withdraw them. The Roth IRA provides no deduction for contributions. Since you have already paid taxes on the money you've contributed to the account, contribution dollars can be withdrawn at anytime without tax consequences

There are certain minimum requirements you must meet in order to open a Roth IRA account. Read more on these requirements in the Roth IRA contribution limits and eligibility section of this site.

You can learn about the general advantages and disadvantages of Rorth IRA accounts. More specific comparison can be found in Roth 401K vs Roth IRA and Traditional IRA vs Roth IRA sections.