roth ira

roth ira

The Roth IRA is a type of individual retirement account that is not taxed. The IRS taxes the contribution, but not the earning, therefore a person who is looking to defer taxation on their retirement account should not open a Roth IRA.

The maximum amount of contribution that is allowed for a Roth IRA is $5000 per year. A person who is over 50 year old may contribute $6000. The direct contributions to a Roth IRA is withdrawn tax free at anytime, and people can use up to $10,000 of this money to purchase a first home.

The Roth IRA does not require the account owner to withdraw money after a certain age, but eligibility is for an account limits a person who makes a lot of money to open an account.

Search another word or see roth iraon Dictionary | Thesaurus |Spanish
Copyright © 2014 Dictionary.com, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature