This account is a nondeductible IRA that offers tax-deferred earnings. Tax-deferred earnings allow you to grow your nest egg at a faster pace than taxable investments.
But, the best part about the Roth IRA is that it offers tax-free distributions if you follow certain requirements. That means the money you withdraw is yours alone and does not have to be included as income at tax time. No other investment product allows you this type of tax-free benefit.
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