A Roth IRA is a type of retirement account that helps you reduce your taxes once you retire. While you’re working, you pay your usual income tax on the money you earn and deposit some of your after-tax earnings into your Roth IRA. Your Roth IRA earns money (interest or dividends), and that money is constantly added to your account. When you retire and start taking money out of your Roth IRA (like you’re paying yourself), there are no taxes. In other words, all the investment gains that your account earns over the years is tax-free. And that’s a big deal. For more details on Roth IRAs, you can visit the Internal Revenue Service (IRS) website.