Is my understanding correct? It seems to be very similar as taking your already taxed funds and putting them in an online bank---Except on the bank account you must report interest earned as taxable income---But with the Roth Ira your interest earned is not taxable interest income---So in the Roth Ira you can open CD's and other investments and not be taxed on the profits. Is it that simple?---Which leads to another question---Do most FI's accept funding from Roth ira's?
You are correct you are not taxed on interest, dividends, capital gains or any profits in a Roth IRA and yes most FI's offer Roth IRA's