How Does a Roth IRA Work? 1 of 2 https://www.fool.com/retirement/plans/roth-ira/how-does-a-roth-ira-work/ With the right investments, these popular retirement accounts could make you a fortune. Kailey Hagen (TMFKailey) Updated: Dec 14, 2020 at 11:04AM Author Bio The Roth IRA is an individual retirement account that provides tax-free growth and withdrawals to participants who pay taxes on their contributions. While it can help anyone save more money for retirement, a Roth IRA is usually best for people who believe they'll be in the same or a higher tax bracket in retirement then they're in right now. By paying taxes up front, they'll give less of their savings back to the government during retirement. Most people understand the general idea of Roth IRAs: You put money in now so it can grow, and then you withdraw it later in retirement. But few understand exactly how this type of account makes money or how they can get the most out of their Roth IRA. We'll cover all of that in detail below. 12/22/2020, 2:19 PM How Does a Roth IRA Work? 2 of 2 https://www.fool.com/retirement/plans/roth-ira/how-does-a-roth-ira-work/ 12/22/2020, 2:19 PM
