This is a type of individual retirement account that is usually not taxed when money is withdrawn from the account

A roth IRA describes an individual retirement account that is usually not taxed when money is withdrawn from the account. To insure no tax is charged, most wait until age 59.5 (60) to withdraw from their roth IRA. The roth IRA allows people to put money into the account pretax and stay clear of tax on their contributions and gains.