<human>:  Can you explain what a roth IRA is?
<bot>: A Roth IRA is a type of retirement account that offers tax-free growth and tax-free withdrawals in retirement. Contributions to a Roth IRA are made with after-tax dollars, meaning the contribution money has already been taxed. Earnings on a Roth IRA, such as interest and dividends, grow tax-free, and once you reach age 59 ½ and have held the account for a minimum of 5 years, you can withdraw the money tax-free. Money withdrawn before the 5-year mark may be subject to taxes and a 10% penalty. Additionally, there are annual contribution limits to Roth IRAs that change yearly.