What is a Roth IRA and who should open one?

A Roth IRA is an individual retirement account where you contribute after-tax dollars, meaning your money grows tax-free and qualified withdrawals in retirement are also tax-free. You contribute money you've already paid income tax on, so there's no tax deduction upfront, but you'll owe nothing when you withdraw in retirement. A Roth IRA is best suited for people who expect to be in a higher tax bracket in retirement than they are now, making tax-free withdrawals more valuable. It's particularly good for younger workers early in their careers with lower current income, and for anyone who wants flexibility since contributions (not earnings) can be withdrawn anytime without penalty. There are income limits, so high earners may not qualify to contribute directly.