A Roth IRA is a type of individual retirement account that allows you to contribute after-tax income, which then grows tax-free and can be withdrawn tax-free in retirement.

Individuals with earned income (such as wages or self-employment income) can contribute to a Roth IRA, subject to income limits set by the IRS.

For 2021, the maximum contribution limit for a Roth IRA is $6,000 ($7,000 if you are age 50 or older). These limits are subject to annual adjustments for inflation.

Some key benefits of a Roth IRA include tax-free growth, tax-free withdrawals in retirement, and the ability to withdraw contributions (but not earnings) penalty-free at any time.

You can open a Roth IRA through a variety of financial institutions, such as banks, brokerage firms, or online investment platforms. Simply fill out an application and fund the account to get started.

You can hold a variety of investments in a Roth IRA, including stocks, bonds, mutual funds, ETFs, and more. It’s important to choose investments that align with your risk tolerance and retirement goals.