Homonym: Roth (IRA)
A Roth account, such as a Roth IRA or Roth 401(k), is a type of retirement savings plan that allows individuals to contribute after-tax income. This means that the money you put in has already been taxed, allowing for tax-free growth and tax-free withdrawals in retirement, provided certain conditions are met.
One of the key benefits of a Roth account is the flexibility it offers. Unlike traditional retirement accounts, contributions to a Roth IRA can be withdrawn at any time without penalties or taxes. This makes it an attractive option for those who want to save for retirement while maintaining access to their funds.