Roth IRA

A tax-qualified retirement savings vehicle which, in contrast to a Traditional IRA, is funded with post-tax money. As long as you follow the rules – principally that no withdrawals are taken prior to age 59½ – you’ll never have to pay taxes on the gains inside the Roth IRA. Roth IRAs are geared towards people with low tax brackets today that might increase in retirement, and as such, only people with income under a certain level can contribute.