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

Normally, you need earned income to fund a Roth IRA, which limits contributions for young children who don’t have jobs.

From MarketWatch • Jun. 9, 2026

As a result, the funds grow tax-free and you won’t pay tax on Roth IRA withdrawals after you retire.

From MarketWatch • Jun. 3, 2026

That involves paying tax now on money that you transfer from a pre-tax retirement account into a Roth IRA.

From MarketWatch • Jun. 3, 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 a minor to have a traditional or Roth IRA, they need to have income from a job.

From Barron's • May 28, 2026