Why Is A Roth IRA Tax Free? 
Roth IRA 's are not ` tax free ' . They are simply not taxed at withdrawal after you have reached the appropriate age to be eligible and avoid penalties . The reason for this is because your contributions to a Roth IRA are done with after-tax dollars . You have already paid tax on the funds when they were earned originally . Because of this , you do not have to pay tax -LRB- again -RRB- when they are withdrawn . 