A ROTH IRA is like a traditional IRA, but the initial investment is with after-tax dollars. This means that you don’t pay taxes when you take the money out after retirement. This makes sense for people who have a low current tax rate but plan to make more money in the future. It also is a good complement to a traditional IRA for people who want to save more, versus less, for retirement.

Tags: IRA, retirement, ROTH