Ask Stash

What is a Roth IRA?

A Roth is a type of individual retirement account (IRA). It allows you to invest in stocks, bonds, mutual funds, certificates of deposit, ETFs, index funds, etc. using money you’ve already paid income taxes on.

With a Roth IRA, your earnings and dividends grow tax-free. This means you don’t pay income taxes on money you take out of your Roth IRA after age 59 ½. This is the age you need to be to access this money without penalty.

Roth IRAs (and Traditional IRAs) have yearly contribution limits of $5,500 ($6,500 for people over the age of 50).

Didn’t find your question?

Shoot us your question and our Stash experts will get back to you.

Submit a question