A Roth IRA is a retirement account where all the money is taxed prior to going into the account. Any interest made is tax-free when used for retirement.
In 2018, your total contributions to your traditional and Roth IRAs cannot be more than:
- $5,500 ($6,500 if you’re age 50 or older), or
- your taxable compensation for the year, if your compensation was less than this dollar limit.
More information from the IRS regarding Roth IRAs can be found here.