Roth IRA


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Related to Roth IRA: Traditional IRA, Roth 401k

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 ?
Fortunately, there's still a way to still a way to contribute to a Roth IRA for those subject to the phase out of direct contributions by the income limits.
In October 2017, with final numbers on his 2016 return available, John might have recharacterized the precise amount back to his traditional IRA, keeping enough in the Roth IRA to fill out a tax bracket but avoid having any dollars taxed at a higher rate.
There are no age limits for contributions to a Roth IRA. However, income limits apply.
You can generally also roll over ("convert") non-Roth distributions from an employer plan into a Roth IRA (you'll generally pay tax upon the "conversion" but qualified distributions from the Roth IRA will be tax free).
Facts: In 2001James Benenson III and Clement Benenson each established a Roth IRA. Shortly thereafter, each Roth IRA invested $1,500 in JC Export, a newly formed domestic international sales corporation (DISC).
The program operated as a starter for a Roth IRA account for those individuals who did not have retirement plans at work.
Maxing out your Roth IRA? Less exhilarating, but much more rewarding.
It's not like this is a traditional versus Roth IRA decision.
Roth IRA investors tend to be younger, which ICI attributes to the fact that only recently have the rules regarding Roth IRA contribution limits, conversions and rollovers been eased.
That move: opening a Roth IRA when a son or daughter is very young and contributing a few hundred dollars to it every month.
Before answering that question, which is the heart of this article, the following is a quick explanation of the Roth IRA. The Roth IRA is simply a personal retirement savings account where the owner prepays the tax.
The reports -- "The IRA Investor Profile: Traditional IRA Investors' Activity, 2007--2014" and "The IRA Investor Profile: Roth IRA Investors' Activity, 2007--2014," which both use data from ICI's IRA Investor Database -- also found that withdrawal activity is lower, equity holdings are higher, and investors tend to be younger in Roth IRAs than in traditional IRAs.