what is a roth ira?

A Roth IRA is a type of individual retirement account that allows you to contribute after-tax dollars. Unlike traditional IRAs, contributions to a Roth IRA are not tax-deductible at the time they are made. However, qualified distributions in retirement are generally tax-free. This makes it particularly appealing for those who anticipate being in a higher tax bracket during retirement. It also offers the advantage of tax-free growth, as earnings within the account can grow without being taxed.