Roth IRA

A financial investment account that helps save for retirement with tax benefits.

With a Roth IRA, you can invest your after-tax dollars today and avoid paying capital gains taxes on your investments when you retire.

Roth IRAs are best for children and young adults, people who have a low tax rate today and expect a higher income (and higher tax rate) later in life.

In order to have an IRA account, you (or your child) need to have some form of taxable income.

Related Terms:

A Guide for your Financial Parenting Journey

Discover guides and compare financial products that
set your kids up for a great financial future