We should all know that contributions to Roth IRAs are not tax-deductible. Since you’ve already paid tax on the money you put in, once you begin withdrawing, you don’t pay tax. Sounds good, right?
As with traditional IRAs/401ks, there are two types of Roth accounts: Roth IRAs and Designated Roth Accounts. The latter is similar to a 401k, in that it is typically employer sponsored and has a much higher contribution limit: