Roth IRA is a tax-protected or tax-free growth account where you can put in your money after tax. Once the pre-tax money has been put into a Roth IRA it can growth inside without any tax concern on the gain. Roth IRA is a preferred retirement account as of following reason:
- No tax on the gain capital. You have no concern if in the future if the government update the tax amount policy, or your gain is above current tax bracket.
- You can withdraw money after 59.5 year old (retirement time).
Currently you can contribute up to $6,500 into this Roth IRA account per year. You can contribute to a Roth IRA at any age as long as you have earned income from a job (full or part time). That means they are appropriate for employees from developer to septuagenarian IKEA greeters