Roth-ira Definition

īär-ā
noun
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 5912 .
American Heritage

A special form of individual retirement account, in which contributions are not tax deductible when made, but that compensates by making the gains distributable tax free upon the owner’s reaching age 70sup>1/sup>⁄2. See also individual retirement account and Keogh Plan.

Webster's New World Law
The definition of a Roth IRA is a type of tax-advantaged individual retirement account which allows the funds to be withdrawn tax free once the account owner reaches retirement age.
An example of a Roth IRA is an account that you open for your retirement that receives special tax treatment from the IRS.
YourDictionary

Origin of Roth-ira

  • After William V. Roth Jr., who pushed for legislation that would allow for such IRAs; and IRA, initialism of individual retirement account.

    From Wiktionary

  • After William Victor Roth , Jr. (1921–2003), US congressman

    From American Heritage Dictionary of the English Language, 5th Edition

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