Roth IRA

A Roth IRA is a type of tax-advantaged retirement plan which individuals set up on their own behalf. Contributions to Roth IRAs are not tax-deductible. However, eligible withdrawals from a Roth IRA are not subject to income tax. Contributions to a Roth IRA can be withdrawn at any time. However, earnings on those contributions may be subject to a 10% penalty if withdrawn before the owner reaches age 59½ or if the IRA has been in place for less than five years.