Instead, contributions are made with post-tax dollars, and these funds are then invested and allowed to grow on a tax-exempt basis moving forward.
A Roth-style retirement account does not provide tax deductions on contributions. Instead, contributions are made with post-tax dollars, and these funds are then invested and allowed to grow on a tax-exempt basis moving forward. In retirement, all withdrawals are free from taxation. However, taxes and penalties can be levied on withdrawals made before the age of 59 1/2.