A Roth IRA is a retirement account where investments can grow tax-free. Deposits are taxed as income and withdrawals are tax-free.

• pros
  • capital gains do not incur tax
  • protected from creditors
  • principal can be withdrawn at any time
  • you can designate charities as beneficiaries and the amount designated does not incur tax and is subtracted from your estate
• cons
  • income limit
    • can circumvent with Backdoor Roth IRA
    • rollover from 529 circumvents
  • 10% penalty when withdrawing earnings (not principal) before 59.5 years old