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

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

Beth Pinsker had detailed tips for action you can take before the end of the year to minimize your taxes on Roth IRA conversions.

From MarketWatch

If you started 2025 with a plan for how much you thought you’d convert to a Roth IRA by the end of the year, the chances are you’re going to end up with a different amount than you had in mind.

From MarketWatch