Roth IRA

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.

Word History and Origins

Origin of Roth IRA¹

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

Example Sentences

We have $2.8 million invested in IRAs, a Roth IRA and a trust account.

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I have approximately $565,000 in an IRA, $250,000 in a Roth IRA, $435,000 in a brokerage account, and $189,000 in a 4.3% high-yield savings account.

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West contributes 4% of each paycheck to a Roth IRA invested in stock-index funds; it currently has about $6,326.

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So, you could distribute $30,000 to yourself, put that in a nonqualified account like your checking and then convert $20,000 to a Roth IRA.

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This also lowers future RMD because the IRA balance was reduced by $80,000, $30,000 to charity and $50,000 to the Roth IRA.

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