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What is a Roth IRA?

A Roth Individual Retirement Account (Roth IRA) is a retirement account with a number of benefits. It:

  • Allows for tax-free and penalty-free withdrawal of your contributions at any time, while interest earnings can be withdrawn without tax and penalties under certain conditions.
  • Provides tax-favored treatment at the time of payout rather than at the time of contribution, which is generally a good fit for savers who are currently in a low tax bracket but may have higher income in the future.
  • Makes it easy for savers to transfer or roll over their savings tax-free to Roth IRAs managed by private-sector account providers.

Visit myRA.gov/roth-ira to learn more.