<prompt> Human: Okay,I am starting a ROTH IRA, and I understand that I put money in and get money each year.My question is, where does the money come from?Is it like a bank account where the money is used for things and they pay me interest on the money I have?Or is it invested like stocks and funds, and I make money based on how well they do?I just dont really get it yet and want to find out. Thanks.  <response>: The Roth IRA is an account, in which you choose the investments. If you choose a bank CD offering interest, then your account grows because of interest. If you choose a mutual fund that invests in stocks, then your account balance grows or falls based on the gains or losses due to the market. Same if you invest in specific stocks.In both cases, the income from the growth is not taxable in the year it happens. In fact, in a Roth, the growth is not taxable ever, as long as you abide by the rules for withdrawing after a certain age. 