A Roth IRA is a retirement account that is slightly more flexible than that of a Traditional IRA. Initial contributions to this retirement account are not tax-deductible, but the distributions are tax free. These contributions may be used to invest into marketable securities (stocks, bonds, and other approved funds).

The benefit of Roth IRAs over Traditional IRAs is that you qualify for your first distribution after the first 5 years of establishment. This qualified distribution can be in cash up to a limit, or put toward buying your first home.