Review:
Roth Ira
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
A Roth IRA is a type of individual retirement account that offers tax-free growth and tax-free withdrawals in retirement.
Key Features
- Tax-free growth
- Tax-free withdrawals in retirement
- Contributions are made with after-tax dollars
Pros
- Tax-free growth can result in significant savings over time
- Flexibility to withdraw contributions penalty-free at any time
- No required minimum distributions during retirement
Cons
- Income limits for eligibility can restrict high earners from contributing
- Contributions are limited to $6,000 per year (as of 2021)