A Roth IRA is a type of individual retirement account (IRA) that allows you to save and invest after-tax dollars for retirement. Unlike a traditional IRA, which allows you to deduct contributions from your taxable income, you contribute to a Roth IRA with money that has already been taxed. However, the benefit of a Roth IRA is that you won’t have to pay taxes on any qualified distributions when you withdraw the money in retirement. One of the advantages of a Roth IRA is the flexibility it offers. Since you’ve already paid taxes on the contributions you make to the account, once you’ve reached age 59 ½ you can withdraw those contributions at any time without penalty. Additionally, since there are no required minimum distributions (RMDs) with a Roth IRA, you can leave your money in the account to grow tax-free for as long as you like. When it comes to investing the money in your Roth IRA, you have a wide range of options, including individual stocks, mutual funds, and exchange-traded funds (ETFs). However, like all investments, there is always the potential for risk