Roth IRA

American  

1. an individual retirement account in which investments are made with taxable dollars, but earnings are tax-free and withdrawals are tax-free after age 59 1/2.

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Etymology

Origin of Roth IRA

1997; after William V. Roth, Jr., senator from Delaware

Example Sentences

Also weigh the benefit of converting some assets in your regular IRA to a Roth IRA.

From Barron's • Apr. 25, 2026

“If you take the $6,000 deduction and you convert $6,000 to a Roth IRA in the same year, then it’s a wash.”

From Barron's • Apr. 25, 2026

If she’s in a low tax bracket this year, she could consider moving the money into a Roth IRA, which allows for tax-free distributions later in life.

From MarketWatch • Apr. 22, 2026

Of the three options, I favor recharacterizing the contribution and getting that money in a Roth IRA.

From MarketWatch • Apr. 20, 2026

By contrast, shifting the contribution to a Roth IRA will not cause any taxation if left alone until 59 ½, and can afford you some tax-free access before then if you need it.

From MarketWatch • Apr. 20, 2026