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

Now, 529 accounts open for at least 15 years can roll up to $35,000 into a Roth IRA for the beneficiary, subject to annual contribution limits.

From MarketWatch • Jun. 9, 2026

With a Roth IRA, you can withdraw contributions at any time tax and penalty free, but earnings may be subject to taxes and penalties before age 59 ½.

From Barron's • May 28, 2026

For a minor to have a traditional or Roth IRA, they need to have income from a job.

From Barron's • May 28, 2026

“A Roth IRA can be a powerful long-term tool for children because it gives you decades of tax-free potential income,” said said Sherron Permashwar, CPA and wealth strategist for the Modern Savvy CPA.

From MarketWatch • May 26, 2026

Parents can use 529 accounts for tax-advantaged education savings, with unused funds transferable to a Roth IRA after 15 years.

From The Wall Street Journal • May 23, 2026