Q: So why is everybody talking about Roth accounts when it comes to retirement savings?

A: Roth accounts – like a Roth IRA or Roth 401(k) – have become a popular way to build retirement savings that you can withdraw tax-free later on.

Here’s how it works: with a Roth, you pay taxes on the money before you contribute it. Then, that money grows tax-free – and when you retire, you can take it out without paying any taxes on it, no matter how much it’s grown.

Roth accounts:

• Let your money grow tax-free after you pay taxes up front
• Allow tax-free withdrawals in retirement—ideal when every dollar counts
• Help protect against future tax hikes
• Don’t require you to withdraw from your account at age 73 (for Roth IRAs)
• Pair well with traditional pre-tax accounts for more flexibility later

Think of it as giving your future self one less tax bill to worry about.

Any questions? I’d be happy to help.

I’m Vincent Hicks, CPA, based in Somerville with over 20 years of experience. Reach out at vhicksconnect@gmail.com or (859) 553-0788.

Disclaimer: This column provides general financial information and should not be considered legal, investment, or tax advice. Individual situations vary. Always consult a qualified professional for personalized guidance.