Roth IRA

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Roth IRA

 (ī′är-ā′)
n.
A modified individual retirement account in which a person can set aside after-tax income up to a specified amount each year. Earnings on the account are tax-free, and tax-free withdrawals may be made after age 59 1/2 .

[After William Victor Roth, Jr. (1921-2003), US congressman.]

Roth IRA


n.
an individual retirement account in which investments are made with taxable dollars, but withdrawals are tax-free after age 59 1/2.
[1997; after William V. Roth, Jr., senator from Delaware]
References in periodicals archive ?
A conversation about a charitable gift annuity can occur from many angles, but the most attractive angle is when you can talk about it in the same breath as an IRA Roth conversion.
TABLE D DEDUCTIBLE IRA ROTH IRA Investment $4,000 $4,000 Tax Savings @ 28% $1,120 -0- Net Outflow $2,880 $4,000 Earnings @ 8% tax deferred $1,877 $1,877 Value in 5 years $5,877 $5,877 Tax on Withdrawals $1,646 -0- Net Cash Increase $1,351 $1,877 Present Value @ 3% if withdrawn in 5 years $747 $1,039 Present Value @ 3% if withdrawn over the next 5 years $1,081 $1,501 Present Value @ 3% if withdrawn over the next 10 years $1,501 $2,084
Regular (deductible) IRA Roth IRA Contribution tax rate 28% 28% 28% 28% Withdrawal tax rate 15% 28% 31% tax-free Amount contributed $2,000 $2,000 $2,000 $2,000 Tax savings ($2,000 x 0.