Your friend Jenny says a Roth IRA has the best tax advantages because you pay taxes now and won't have to pay them when you take the money out in retirement. Why might she be right?

because when an individual saves income in a Roth Individual Retirement Account(IRA), one saves only the after-tax income.

Explanation:

Roth IRA provides an interesting opportunity for investors to save income with a tax-free withdrawal if they can meet certain conditions.

Jenny might be right when she says that a Roth IRA has the best tax advantages because when an individual save income in a Roth Individual Retirement Account(IRA), one saves only the after-tax income.

It means that the savings that an individual does are not tax-deductible. Therefore, when the individual withdraws during retirement, one does not have to pay any tax.

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