Roth IRA stands for a Roth Individual Retirement Arrangement. A Roth IRA is designed to allow tax payers, to save money for their retirement while the savings grow tax-free. All of the tax benefits associated with a Roth IRA occur at the time of the withdrawal.
With a Roth IRA, withdrawals are not taxed at all (subject to certain tax laws). Basically put, Roth IRA's turn investment income into tax-free income. However there are no tax benefits associated with your contributions, as all contributions are made with money after tax.
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