An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.
- ‘The earnings distributed from the Traditional IRA, however, will be treated as taxable income, whereas qualified distributions of earnings from a Roth IRA are tax free.’
- ‘There are lots of good reasons to roll over a traditional individual retirement account to a Roth IRA.’
- ‘Republicans would like to see income limits removed for IRAs, 401 s, and especially Roth IRAs, whose withdrawals are tax-free.’
- ‘Do you yourself have retirement accounts set up for yourself such as a Roth IRA?’
- ‘If you have a traditional individual retirement account, consider converting to a Roth IRA, where withdrawals are tax-free after you retire.’
Created in 1997 and named for Senator William Victor Roth II (1921–2003) of Delaware, who proposed this in Congress.