A Roth IRA is a variation on a traditional individual retirement account (IRA). It allows you to withdraw your earnings completely tax free any time after you reach age 59½, provided your account has been open at least five years. Because contributions are made with after-tax dollars, they can be withdrawn tax free as well.
You may also be able to withdraw money earlier without penalty if you qualify for certain exceptions, such as using up to $10,000 toward the purchase of a first home. And since a Roth IRA has no required withdrawals, you can continue to accumulate tax-free earnings as long as you like.
You can make a nondeductible annual contribution, up to the annual federal limit, any year you have earned income, even after age 72, though you can never contribute more than you earn. If you are 50 or older, you may also make annual catch-up contributions.
To contribute to a Roth IRA, your modified adjusted gross income (AGI) must be less than the annual limit set by Congress.