Q: What is a Roth IRA?

A Roth IRA is a retirement savings option.

Contributions are nondeductible—the owner must pay income taxes on contributions.

Distributions from a Roth IRA are tax-free as long as the owner is at least 59½ years old AND a five-year holding period has been met of the original contribution.

To contribute to a Roth IRA, you must be at least 18 years old.

Note that there are Modified Adjusted Gross Income (MAGI) restrictions.

Learn more about the differences between a Roth and Traditional IRA.