what is a roth ira 
a roth ira is a type of tax advantaged individual retirement account to which you can contribute after tax dollars toward your retirement the primary benefit of a roth ira is that your contributions and the earnings on those contributions can grow tax free and be withdrawn tax free after age 59 assuming the account has been open for at least five years in other words you pay taxes on money going into your roth ira and then all future withdrawals are tax free roth iras are similar to traditional iras with the biggest distinction being how the two are taxed roth iras are funded with after tax dollars unlike a traditional ira the contributions are not tax deductible but once you start withdrawing funds the money you take out is tax free tara anand investopediasubscribe to term of the day and learn a new financial term every day stay informed and make smart financial decisions sign up now 