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Retirement Planning

Roth IRA

A retirement account funded with after-tax money that can grow and be withdrawn tax-free.

A Roth IRA is a tax-advantaged retirement account (available in the US) funded with money you have already paid tax on. Qualified withdrawals in retirement — including all the growth — are tax-free, which can be especially valuable for early savers with decades of compounding ahead.

Examples

  • Contributing to a Roth IRA in your 20s lets decades of growth come out tax-free later.

Related terms

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