Microsoft Store
 

Roth IRA


 

A Roth IRA is an individual retirement account (IRA) in the United States. A Roth IRA may invest in a variety of options such as stocks or mutual funds. As with all IRAs, there are specific elegibility and filing status requirements mandated by the U.S. Internal Revenue Service. A Roth IRA's main advantage is its tax structure. Contributions are made post-tax; earnings and withdrawals are federal income tax free. In contrast, contributions to a traditional IRA are made pre-tax and earnings are tax free, but withdrawals are subject to tax. Another advantage of the Roth IRA is that there are fewer restrictions on withdrawals than with a traditional IRA.

External links