By the end of this course, you should be able to:
Explain what a Roth IRA is and how it differs from a regular savings account.
Understand important Roth IRA vocabulary.
Explain the difference between contributing money and investing that money.
Understand how long-term growth and compounding can affect retirement savings.
Calculate how regular contributions could grow over time.
Identify major benefits, limitations, and risks of Roth IRAs.
Understand basic IRS eligibility and contribution rules.
Identify what to look for when comparing Roth IRA providers.
Explain the basic steps involved in opening and funding a Roth IRA.
A Roth IRA is an account, not an investment itself.
Think of the Roth IRA as a container. After money is contributed to the account, you generally choose what investments to hold inside it, such as stocks, bonds, mutual funds, or exchange-traded funds (ETFs), depending on what the financial institution offers. Investor.gov describes IRAs as tax-advantaged retirement accounts that can hold investments and generate earnings from sources such as interest, dividends, and capital gains.
Simply opening a Roth IRA and depositing cash does not necessarily mean that money is invested. Understanding this distinction will be important throughout this course.
Retirement may feel far away, especially if you're still in college. But learning how retirement accounts work before you earn your first full-time salary can help you make informed decisions when you begin working, receive employer benefits, or start investing independently.
You do not need to be wealthy to learn about investing.
The goal of this course is not to tell you whether you should open a Roth IRA or what investments you should purchase. The goal is to give you the knowledge necessary to understand your options and make informed financial decisions.
You'll complete seven short modules:
Module 1 — What Is a Roth IRA?
Learn what a Roth IRA is and see a simple real-world example.
Module 2 — Vocabulary to Know
Learn essential retirement and investing terminology and complete a matching activity.
Module 3 — How Roth IRAs Work
Explore contributions, investments, growth, compounding, and why account values change.
Module 4 — Run the Numbers
See how different contribution amounts and time periods can affect potential long-term growth.
Module 5 — Benefits & Risks
Examine Roth IRA advantages as well as investment risk, contribution restrictions, and other limitations.
Module 6 — How to Open a Roth IRA
Learn what to look for in a provider and walk through the general account-opening process.
Module 7 — Final Exam
Test what you've learned and complete the course.
Internal Revenue Service — Roth IRAs
https://www.irs.gov/retirement-plans/roth-iras
IRS Publication 590-A — Contributions to Individual Retirement Arrangements
https://www.irs.gov/publications/p590a
Investor.gov — Individual Retirement Accounts (IRAs)
https://www.investor.gov/introduction-investing/investing-basics/investment-accounts/tax-advantaged-accounts/retirement-savings/individual-retirement-accounts-iras