<human>:  Tell me the benefits and drawbacks of a Roth IRA
<bot>: Benefits of a Roth IRA:
1. Tax-free withdrawals in retirement: Withdrawals including earned interest are tax-free after the age of 59 ½.
2. Tax-free contributions: Contributions are made with after-tax dollars, so you don’t get the immediate tax deduction that you do with a traditional IRA, but the benefit is that your investments can grow tax-free.
3. No required minimum distributions: Unlike traditional IRA’s Roth IRA’s have no required minimum distributions.Drawbacks of a Roth IRA:
1. Limited eligibility: Income and marriage restrictions can disqualify some people from contributing to a Roth IRA.
2. Early withdrawal penalties: Withdrawing funds before you reach the age of 59 ½ comes with a 10% federal penalty tax, plus possibly state taxes.
3. Limited annual contribution amounts: The amount you can contribute annually to a Roth IRA is limited.