A Roth IRA (Individual Retirement Account) is an investment account created by Congress in 1997 to help individuals save for retirement. The main distinction of a Roth IRA is that your investments grow tax-free.

Roth IRAs offer middle-income taxpayers three major tax benefits that make them an attractive retirement planning option.

First, unlike pre-tax accounts, you never have to pay taxes on the money you contribute to a Roth IRA, even when you withdraw it during retirement. This means any qualified funds that you contribute to your Roth IRA account are not subject to federal taxes. This is especially appealing to people who expect to be in a higher tax bracket when they retire, since their tax rate will not increase when withdrawing funds.

In addition, any money you earn on your Roth IRA account investments is completely tax-free. This means you won't pay taxes on any earnings from your investments, whether you choose to reinvest them in your account or cash them out.

Finally, Roth IRAs are subject to fewer restrictions and eligibility requirements than other retirement plans. Generally speaking, anyone with earned income can contribute to a Roth IRA, regardless of their age. Furthermore, you can keep your Roth IRA