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Roth

IRA

Basics



Overview

Description

What Is a Roth IRA?


Roth IRAs are tax-favored financial vehicles that enable investors to

save money for retirement. They differ from traditional IRAs in that

taxpayers cannot deduct contributions made to a Roth. However,

qualified Roth IRA distributions in retirement are free of federal income

tax and aren't included in a taxpayer's gross income. That can be

advantageous, especially if the account owner is in a higher tax bracket

in retirement or income tax rates are higher in the future.


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