Roth IRA

Noun

Meaning

Roth IRA (plural Roth IRAs)

(US, finance) A particular kind of IRA (individual retirement account), used for its tax-related benefits.

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Related terms

Examples

A Roth IRA allows investors a great deal more control over their accounts than a Roth 401(k). Source: Internet

A Roth IRA allows all of the money in the fund to grow completely tax-free. Source: Internet

Employer and employee contributions are immediately fully vested, and money deposited into a SIMPLE IRA can be invested just like funds in a traditional or Roth IRA. Source: Internet

If you withdraw from your Roth IRA early, you’re only hit with a tax on the gains, not the money you put into the account. Source: Internet

Because they’re made with after-tax dollars, you can pull contributions out of a Roth IRA at any time. Source: Internet

Finally, the Roth IRA has a so-called account seasoning requirement of five tax years before distributions fall into the “qualified” category. Source: Internet

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