It is a retirement account that offers all its tax breaks on the back end.  Qualifying taxpayers can contribute up to $2,000 annually.  These contributions are not tax-deductible for anyone.  However, the investment income earned in the account is not taxed while it's building up; and, if the money is left alone for at least five years and then withdrawn for a qualifying purpose—retirement after age 59 1/2, disability or a first-time home purchase—none of the investment earnings are taxable—ever.
 

Here are some links to more information on Roth IRAs:

• Roth IRA Web Site Home Page
• Understanding the Roth IRA
• Understanding The Taxpayer Relief Act of 1997 - The New Roth IRA
• New Roth IRA gets high marks from industry experts

For further information check out  these two articles from "The Los Angeles Times," Business Section for Sunday, February 22, 1998: