what is a roth IRA?

Answer 1

There is two types of Individual Retirement Account (IRA). One is referred to as "the traditional IRA" and the other is called a "Roth IRA" Both have advantages and disadvantages depending on the individual. The Roth's advantages are:
1. You can take out your contribution at any time.
2. The earnings are not taxable when they are qualified distributions.
3. A Roth is available for people that do not qualify for a traditional
4. You are never required to take distributions unlike the traditional.
You need to talk to someone in detail about the two before making a decision. Some are better off with a Roth some with a traditional

Answer 2

ROTH IRA is a retirement account that has tax free growth and tax free withdrawal at retirement.

You can put a max contribution of $ 4,000 dollars each year in your ROTH IRA.

It's easy to open a ROTH IRA, it takes 5 minutes to open one up at a bank but some banks charge you $15.00 or more a year. You can avoid ROTH IRA fees by going to a broker and opening a NO FEE IRA.

You can invest CDs, mutual funds, ETFs, bonds, stocks within a ROTH IRA and money you earn inside grows tax free.