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Roth IRA

A Roth IRA is a US individual retirement account funded with money you have already paid taxes on. Your investments grow tax-free, and qualified withdrawals in retirement are completely tax-free. It is especially powerful if you expect to be in a higher tax bracket later in life.

Example

Contributing $7,000 per year from age 30 to 65 at a 7% return builds roughly $1 million — and every withdrawal is tax-free.

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