This site may contain affiliate links. We may earn a commission if you sign up through our links. Content is for educational purposes only and is not financial, investment, tax, or legal advice. Consult a qualified professional before making financial decisions.

Back to Glossary

Roth IRA

Account Types

An Individual Retirement Account funded with after-tax dollars, where contributions don't provide an immediate tax deduction but all qualified withdrawals—including decades of investment growth—are completely tax-free. Roth IRAs have income limits for direct contributions, no RMDs during the owner's lifetime, and allow tax-free and penalty-free withdrawal of contributions (not earnings) at any time.

Related Terms

Learn More