---
title: Why a Roth IRA Is Great for Young Adults
description: Millennial money expert Stefanie O'Connell explains why a Roth IRA is a good retirement savings vehicle for young adults.
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published: '2016-03-21T17:03:45.000Z'
modified: '2016-03-21T17:03:45.000Z'
section: Retirement
tags:
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![Screen Shot 2016-02-29 at 1.08.31 PM](https://img.money.com/2016/02/screen-shot-2016-02-29-at-1-08-31-pm-e1456769864872.png)

A Roth IRA is a tax-advantaged retirement account, and it's a good investment vehicle for young investors, explains millennial money expert [Stefanie O'Connell](https://stefanieoconnell.com). You pay taxes on the money you put into the account. But the money grows tax-free, and when it comes time to withdraw that money, you don't pay any taxes.

Whether or not your employer offers a 401(k) plan, a Roth IRA can be a smart choice, because your tax rate, if you're a on a millennial's salary, is probably low now, and will likely be higher once you reach retirement age.

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