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.
Oraciones de ejemplo
- 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.
- If you have a traditional individual retirement account, consider converting to a Roth IRA, where withdrawals are tax-free after you retire.
- There are lots of good reasons to roll over a traditional individual retirement account to a Roth IRA.
Created in 1997 and named for Senator William Victor Roth II (1921–2003) of Delaware, who proposed this in Congress.
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