Definition of Roth IRA in US English:

Roth IRA


  • 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.

    • ‘If you have a traditional individual retirement account, consider converting to a Roth IRA, where withdrawals are tax-free after you retire.’
    • ‘Do you yourself have retirement accounts set up for yourself such as a Roth IRA?’
    • ‘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.’
    • ‘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.’


Created in 1997 and named for Senator William Victor Roth II (1921–2003) of Delaware, who proposed this in Congress.


Roth IRA