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

Note that with traditional IRAs, you can’t just take the $7,000 out tax-free as you can with the Roth IRA.

From MarketWatch • Apr. 20, 2026

I’m considering waiting until I retire and then, during those lower-income years, converting some of my traditional IRA funds into a Roth IRA.

From MarketWatch • Apr. 20, 2026

When your children eventually inherit your Roth IRA, they have a 10-year window to withdraw the funds.

From MarketWatch • Apr. 17, 2026

Up to $35,000 of 529 money can also be rolled into a Roth IRA, subject to limitations.

From The Wall Street Journal • Mar. 31, 2026

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 • Mar. 23, 2026