What is Roth IRA?
Definition A Roth IRA is funded with after-tax dollars, so qualified withdrawals of both contributions and earnings in retirement are completely tax-free. The ability to contribute directly phases out at higher incomes, and there are no required minimum distributions during the original owner's lifetime. Contributions can generally be withdrawn at any time without tax or penalty.
Tax-free growth and flexible withdrawals make it especially valuable for younger clients and for building tax diversification in retirement.