What Is a Roth IRA?

A Roth IRA is a retirement account where you contribute after-tax money — meaning no deduction now, but your money grows tax-free and qualified withdrawals in retirement are completely tax-free. Contribution limits are the same as a traditional IRA ($7,000 for 2024), but income limits apply: high earners may not be able to contribute directly (though the backdoor Roth is an option). Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime. They're especially powerful for younger investors expecting to be in a higher tax bracket in retirement.