What is the difference betwen a Roth IRA and a regular portfolio account from a broker?
What advantage does a Roth IRA have over a traditional portfolio account from a brokerage like Fidelity or Ameritrade, for instance?
First of all, IRA (Individual Retirement Account) is not a product, it is an account type. You can have almost any publicly traded assets in your IRA, just like you can have them in a regular brokerage accounrt.
Roth IRA has a more favorable tax treatment compared to a regular brokerage account; although your contributions are not tax-deductible (as they are for a traditional IRA), there are no federal taxes that are payable on any returns from a Roth IRA, whether those returns are income or capital gains.
Fidelity has a brief and relatively easy to read summary of differences between traditional and Roth IRAs (see link below).
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