A Roth IRA is a retirement savings account that allows you to contribute after-tax dollars, meaning you don’t get a tax deduction upfront. The trade-off is powerful: your money grows tax-free, and qualified withdrawals in retirement are also tax-free. This makes it especially attractive if you expect to be in a higher tax bracket later in life.
Unlike traditional IRAs, Roth IRAs don’t require you to take mandatory withdrawals during your lifetime. That flexibility makes them not only a retirement tool but also a potential estate planning vehicle, since you can leave the account to heirs without being forced to draw it down yourself.
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