In the United States, a type of individual retirement arrangement (IRA) that permits people within certain income limits to make nondeductible annual contributions and to withdraw money on a tax-free basis at retirement age. TO TOP
A retirement savings vehicle in which contributions are made with after-tax dollars. Withdrawals of contributions can be made without taxes at any time. Withdrawals of earnings are taxable but only when the withdrawal is not a “qualified” distribution.
an IRA consisting of already-taxed dollars. Withdrawals are not subject to tax regardless of gains, and there is no requirement for mandatory withdrawals at age 70 1/2 as with other retirement instruments.