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

In Brooklyn, 32-year-old Alex Wedel tries to put at least a few hundred dollars into his Fidelity investment account and his Roth IRA every month.

From The Wall Street Journal

However, a Roth IRA will not be available to many due to income limitations, nor attractive due to the pro-rata rule.

From MarketWatch

My Roth IRA has $28,000, also invested in a total stock market index fund, and my wife’s Roth IRA has $7,000, again invested in a total stock market index fund.

From MarketWatch

In 2026, single filers can make full contributions to a Roth IRA if their income is less than $153,000 and they’re phased out after $168,000; for individuals who are married filing jointly, the limit begins at $242,000 and is phased out at $252,000.

From MarketWatch

“This type of mega backdoor Roth IRA conversion is particularly attractive, I believe, for investors who want massive tax-free growth for retirement and can afford the current tax hit on the conversion,” said Jay Spector, a certified financial planner and founding partner at Evervest Financial.

From MarketWatch