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

I now realize I should have put it in a Roth IRA so I wouldn’t face double taxation on the money.

From Los Angeles Times

You can’t contribute to an IRA — or a Roth IRA, for that matter — if you don’t have earned income.

From Los Angeles Times

A word of caution from Charles Schwab: “A Roth IRA conversion can be especially advantageous during your initial years of retirement, when RMDs haven’t yet kicked in and you’re most likely to be in a lower tax bracket as compared to your working years. But if you’re already receiving retirement benefits, converted funds could increase your taxable income.”

From MarketWatch

As a result, some taxpayers are considering doing Roth IRA conversions because the higher deductions can shelter the taxable income these transfers generate.

From The Wall Street Journal

Yes, they could use this $30,000 deduction to offset taxable income of $30,000 from a Roth IRA conversion.

From The Wall Street Journal