The Roth IRA allows you to contribute after-tax dollars with earnings growing tax free (depending on your income). You pay no taxes when you withdraw the money, provided you have had the account for at least five years and you’re 59 or older. In addition, you may withdraw without penalty, up to $10,000 for a first-time home purchase. Another Roth IRA benefit is that you don’t have to begin withdrawing money at age 70 1/2, unlike a traditional IRA.*