Roth IRA — meaning explained

Roth IRA: A US retirement account with tax-free growth.

What it means

You contribute money you've already paid tax on, then withdrawals in retirement are tax-free. Teens with earned income can often open a custodial version.

Category

Money — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.