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What is a Roth IRA?
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A Roth IRA is an Individual Retirement Account (IRA) that allows you to save for retirement without paying taxes on the money you put into it. Contributions are made with after-tax dollars, but withdrawals in retirement are tax-free. The main difference between a traditional and Roth IRA is when you pay taxes on your contributions. With a traditional IRA, you pay taxes upfront when you make the contribution. With a Roth IRA, you do not pay taxes upfront, but you will be taxed when you take out the money in retirement.