ELI5- What is a roth IRA?


22F- ive been told i should think about acquiring one of these. what the heck is it? and what is it used for?

edit: how do i go about getting one?


Simply put, it’s a retirement account. You can put money into it each year and, in theory, it will grow over time due to interest and other contributions.

It’s a retirement account to save money with. You put money into the account *after* you pay taxes. So money out of your paycheck. When you’re old enough you can take money out of the Roth IRA and not pay taxes on the funds. This includes the interest earned.

So the interest earned with the Roth IRA is tax free.