Which statement about a Roth IRA is correct?

A Roth IRA is specifically designed to allow individuals to benefit from tax-free withdrawals in retirement. This is the primary feature that distinguishes it from traditional IRAs. With a Roth IRA, contributions are made with after-tax income, meaning that taxes are paid upfront. As a result, when individuals reach retirement age and start to withdraw funds from their Roth IRA, those withdrawals, provided certain conditions are met, are completely tax-free. This means that all the growth on the investment also avoids taxation upon withdrawal, allowing individuals to maximize their retirement savings.

In contrast to this, deductions and pre-tax contributions are features of traditional retirement accounts, and Roth IRAs generally do not have required minimum distributions during the account holder's lifetime, offering more flexible retirement income options.