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

The real power play is for parents to contribute $5,000 a year for 18 years, then help them convert the account to a Roth IRA so that it can ultimately be accessed tax- and penalty-free.

From The Wall Street Journal

Their plan from the start is to help their child convert the account to a Roth IRA when the timing is right, based on the child’s and the parents’ earnings.

From The Wall Street Journal

A market dip is prime time for converting some assets in your regular individual retirement account to a Roth IRA.

From Barron's

Donaldson told YouTuber Jon Youshaei he anticipates filming supplemental content “educating people on investing and showing them what is a Roth IRA,” for example.

From MarketWatch

Bottom line: “If you believe your tax rate is lower now than it will be when you start taking withdrawals, a conversion may look promising because you’ll pay conversion taxes while you’re in a lower tax bracket and enjoy tax-free Roth IRA withdrawals later.”

From MarketWatch