Roth IRA
An after-tax retirement account where qualified withdrawals — including all growth — are completely tax-free.
A Roth IRA is funded with after-tax dollars, so contributions don't lower your taxes today. In return, qualified withdrawals in retirement are entirely tax-free, including all the investment growth, and there are no required minimum distributions during the original owner's lifetime.
Roth IRAs are especially valuable when you expect higher tax rates later, want tax diversification, or want to leave tax-free money to heirs. Direct contributions phase out at higher incomes, but the backdoor Roth and Roth conversions provide other paths in. Contributions (but not earnings) can generally be withdrawn anytime without tax or penalty, which makes the Roth unusually flexible.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.