- Tax-Free Growth: Since the contributions are made with after-tax dollars, the growth of the investments is tax-free. - Tax-Free Withdrawals: Qualified withdrawals are not subject to income tax, which can be beneficial during retirement. - No Required Minimum Distributions (RMDs): Unlike Traditional IRAs, Roth IRAs do not require you to start taking distributions at age 72, giving you more flexibility in retirement planning. - Estate Planning: Roth IRAs can be passed on to heirs without the burden of income taxes.
