A Roth IRA is an individual retirement account funded with after-tax money. In return for paying tax up front, qualified withdrawals in retirement are tax-free.
That makes the account especially useful for people who expect to be in a higher tax bracket later, or who want tax diversification instead of putting everything into one tax treatment. It also tends to be more flexible than many retirement accounts because your original contributions can usually come back out without tax or penalty.
The catch is that Roth IRAs have income limits for direct contributions, yearly contribution limits, and rules for qualified withdrawals. The account is simple in concept, but the details matter.
This is general information, not professional financial advice. For decisions about your situation, talk to a qualified professional.
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