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

We plan to give her some money to spend and will also help fund a Roth IRA.

From MarketWatch

Families looking to help their kids take advantage of time in the market, save for future expenses and build a financial foundation typically start with a custodial account, a 529 college savings plan or a Roth IRA for kids who work, Ken Hevert, head of self-directed investing at Fidelity Investments, told MarketWatch.

From MarketWatch

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

Their plan from the start is to help their child convert the account to a Roth IRA when the timing is right, based on the child’s and the parents’ earnings.

From The Wall Street Journal

A market dip is prime time for converting some assets in your regular individual retirement account to a Roth IRA.

From Barron's