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- Allows for tax-free and penalty-free withdrawal of your contributions at any time, while interest earnings can be withdrawn without tax and penalties under certain conditions.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.