Roth IRA

Roth IRA
An individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free. Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.

A qualified distribution is one that is taken at least five years after the taxpayer establishes his or her first Roth IRA and when he or she is age 59.5, disabled, using the withdrawal to purchase a first home (limit $10,000), or deceased (in which case the beneficiary collects). Since qualified distributions from a Roth IRA are always tax free, some argue that a Roth IRA may be more advantageous than a Traditional IRA.


Investment dictionary. . 2012.

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  • Roth IRA — n. An individual retirement account in which contributions are made from post tax income and qualified withdrawals can be made tax free. See also individual retirement account The Essential Law Dictionary. Sphinx Publishing, An imprint of… …   Law dictionary

  • Roth IRA — A Roth IRA is an Individual Retirement Account (IRA) allowed under the tax law of the United States. Named for its chief legislative sponsor, Senator William Roth of Delaware, a Roth IRA differs in several significant ways from other… …   Wikipedia

  • Roth IRA Conversion — A reportable movement of assets from a Traditional, SEP or SIMPLE IRA to a Roth IRA. The movement of assets may be taxable. A conversion may be accomplished by a rollover of assets directly between the trustees of the Traditional and Roth IRAs,… …   Investment dictionary

  • Roth IRA — noun A particular kind of IRA (individual retirement account), used for its tax related benefits. See Also: IRA, Roth 401(k) …   Wiktionary

  • Roth IRA — 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] * * * [rôTH; räTH] n. an individual retirement account… …   Useful english dictionary

  • Roth IRA — 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] * * * …   Universalium

  • Roth IRA — Individual Retirement Account named for Senator William V Roth …   Eponyms, nicknames, and geographical games

  • Roth IRA — n. bus an individual retirement account in which investments are made with taxable dollars, but withdrawals are tax free after age 59 1/2 • Etymology: 1997; after William V. Roth, Jr., senator from Delaware …   From formal English to slang

  • Roth IRA — individual retirement account that allows contributors to make annual contributions and to withdraw the principal and earnings tax free under certain conditions. Maximum annual contributions are $3,000 per year (phasing up to $4,000 per year in… …   Financial and business terms

  • Roth IRA — trust fund into which individuals can deposit a annually limited amount of post tax income for withdrawal after retirement …   English contemporary dictionary

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