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

Eventually, they will also start maxing out a Roth IRA.

From MarketWatch

Moving the funds into a Roth IRA would allow the money to grow tax-free for decades.

From MarketWatch

Moving the funds into a Roth IRA would allow the money to grow tax free for decades.

From MarketWatch

Among others: a Roth IRA conversion; a large capital gain; and employer bonus or stock-option income.

From The Wall Street Journal

Currently, you can only make use of that exception for early withdrawals from traditional IRA accounts, or you can take Roth IRA contributions out at any time without taxes or penalties.

From MarketWatch