A Roth IRA is a retirement brokerage account that provides federally tax-free growth and distributions once it has been open for 5 years and you are at least 59 1/2 years of age. It allows you to make after-tax contributions.
This account type is built for people who expect to be in a higher tax bracket in the future.
Below is a quick summary of what a Roth IRA offers.
Deductible Contributions: No
Contributions: After-Tax Dollars
Maximum: $6,000 ($7,000 if you are over age 50)
Income Restrictions: Must be below certain thresholds
Age Limit: None
Disbursements: Penalty-free and tax-free after invested for 5 years and age 59 1/2
Mandatory Distributions: None