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Roth IRA

Roth IRA

5 5.1
A US retirement account you pay tax on now and can take out money later without paying tax
  • noun
  • /rɔθ ˈaɪɑːrˈeɪ/
  • Specialized
translation icon : Roth IRA
  • Withdrawals from Roth IRAs, as you know, are tax-free.
  • Roth IRA is tax-free
  • Roth IRA contributions
  • Roth IRA account

Also, any money that you make within a Roth IRA is tax free.

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Examples

  • The Roth IRA, with its desirable tax-free withdrawal feature, is owned by only 13 percent of households.

    Academic text (2007)
  • We prefer to own the satellite positions in a client's Roth IRA or other tax-deferred accounts.

    Blog text (23)
  • Also, any money that you make within a Roth IRA is tax free.

  • By far the easiest investment for your Roth IRA is buying target date funds.

  • Read who is eligible to open a Roth IRA and who should open a traditional IRA.

    Blog text (3)
  • There are two types of IRAs: a traditional IRA or a Roth IRA.

    Blog text (1)
  • If you haven't contributed to your IRA or Roth IRA for 2009, you have until April 15, 2010, to make that move.

    Blog text (32)
  • Set aside a small amount each month when possible and put it into a Roth IRA or 401(k).

    Blog text (22)
  • Retirement and stocks: The bulk of the $340,000 in retirement funds we have is in Roth IRAs and 403b accounts.

    Blog text (14)
  • A Roth IRA allows you to save for retirement while your investments grow tax-free.

Synonyms

IRA
vsRoth IRA
  • Specialized
56 4.7

An account people use to save money for retirement with tax benefits

is the account type that uses after tax contributions and tax free withdrawals
retirement plan
vsRoth IRA
27 3.0

A set of savings and investments that gives you money after you stop working

differs by the specific timing of tax on contributions and withdrawals
retirement account
vsRoth IRA
  • US
21 3.0

A plan where you save money to use after you stop working

focuses on after tax contributions and tax free withdrawals
retirement fund
vsRoth IRA
14 3.1

Money saved to give you regular income after you stop working

is about an account that uses after tax contributions and untaxed withdrawals
individual retirement account
vsRoth IRA
  • Specialized
4 5.0

A US savings account for money used after you stop working that grows without tax until you take it out

uses taxes on contributions now and not on qualified withdrawals
1 3.1

An account that holds money to use after you stop working

specifies that contributions are after tax and withdrawals are tax free
1 2.5

Money you regularly save to use after you stop working

is distinguished by after tax input and tax free output

Surface Forms

Roth IRA singular
Roth IRAs plural

Morphology

Roth + IRA

‘Roth’ is a proper-name label with no lexical meaning that signals the tax treatment, while ‘IRA’ only indicates a retirement account type; the crucial information about after-tax contributions and tax-free withdrawals cannot be derived from the parts. This is a US-specific financial term that requires specialized or cultural knowledge, so a B1 learner who knows the constituents would not be able to infer the full meaning.

Etymology

Roth IRA gets its name from U.S. senator Roth, who helped create the law that made this account in the 1990s, and IRA stands for 'Individual Retirement Account'. Because it is named after him, the term reminds people that this special savings plan lets you put in money after tax and later take it out 'tax-free' in retirement.