Final answer:
Tax-free withdrawals from a Roth IRA are possible after the account holder is 59½ years old and the account has been open for at least five years.
Step-by-step explanation:
A Roth Individual Retirement Account (Roth IRA) has specific conditions for tax-free withdrawals. The correct condition for tax-free withdrawals is a) After age 59½ and having the account open for at least five years. This means that once you have reached the age of 59½ and if your Roth IRA has been opened for a minimum of five years, the earnings can be drawn out tax-free. These tax benefits are a significant advantage of the Roth IRA and a critical difference from traditional IRAs, where withdrawals are taxed at the individual's current income tax rate.
Roth IRAs are suitable for those anticipating higher tax rates in the future as they allow for the accumulation of earnings without the additional burden of taxes upon withdrawal, assuming the stipulated conditions are met. It should be noted that contributions to a Roth IRA are made with after-tax dollars, which is why the withdrawals can be made tax-free if the rules are followed.