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.

---

Etymology

Origin of Roth IRA

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

Example Sentences

That money may become a Roth IRA instead, potentially growing tax-free for decades.

From MarketWatch • Jun. 9, 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

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 parents who can afford it, pouring money into an account and later converting it to a Roth IRA can set up a giant nest egg for their child.

From The Wall Street Journal • May 27, 2026

He said I can then use a depreciation factor of 35% on the amount converted to a self-directed Roth IRA, so I’d only be paying taxes on 65% of the amount converted.

From MarketWatch • May 26, 2026