What type of retirement plan was established by the Taxpayer Relief Act of 1997?

The Taxpayer Relief Act of 1997 established the Roth IRA, which allows individuals to contribute after-tax income, enabling tax-free growth and tax-free withdrawals in retirement if certain conditions are met. This plan provides a flexible savings option, particularly for younger investors, as it allows for tax-free withdrawals of contributions at any time. Additionally, the act expanded the eligibility and contribution limits for various retirement accounts, encouraging more Americans to save for retirement.