An IRA that has withdrawals that are tax-free and is funded with contributions that are nondeductible. It was formulated for people who don't qualify for tax deductions for contributions to an IRA up-front. These individuals usually don't qualify for these deductions because of their income level or participation in a retirement plan that is sponsored by their employer.
An individual retirement account funded with after-tax contributions that allows for tax-free withdrawals.
A type of IRA developed in 1997 that reverses the standard procedure governing taxes. "Traditional" IRAs allow the individual to take tax deductions on annual contributions, but withdrawals (in retirement) are taxed as income. In a Roth IRA, contributions receive no tax break, but retirement-age withdrawals are tax-free. Essentially, the Roth IRA allows for tax-free capital gains, which makes it a very powerful retirement investment tool.
Type of Individual Retirement Account designed primarily for people with qualified company retirement plans or whose income exceeds the deductibility limits of traditional IRAs.
A type of IRA established in the Taxpayer Relief Act of 1997 that allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, aren't taxed at all. A single person can contribute up to $3,000 and a married couple up to $6,000 annually to this type of individual retirement account.
A new type of IRA, established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all. Click here for more info on the Roth IRA.
a type of retirement savings account in which contributions are not tax-deductible but earnings grow federal income tax-free and distributions are also federal income tax-free if certain requirements are met upon distribution
An individual retirement account that permits tax-free distributions after age 59 1/2.
The Roth IRA was rolled out in 1998 as an alternative to the Traditional IRA. A Roth IRA allows for tax-deferred growth of contributed funds. However, contributions are not tax-deductible. Tax-free withdrawls with a Roth IRA are possible after you've had the account for more than five years and you are over age 59 1/2.
a form of IRA that you pay taxes on upfront
a good fit if you don't need the tax break now and want future flexibility with your funds
a good place to put some of that cash, because it will grow tax-free forever (You can invest the funds in a mutual fund, CD, or shares of stock)
a great tool as you earn tax deferred and withdraw tax free
a great way to save, as is a conventional IRA
a great way to save for retirement tax-free and penalty-free distributions
a great way to save for retirement with tax-deferred growth and tax-free withdrawals, but it can also provide funds to pay for college expenses
an account or annuity set up in the United States
an account that is separate from your retirement savings plan
an after-tax retirement vehicle tha
an after-tax retirement vehicle that produces huge tax savings because all tax distributions are tax-free
an after-tax retirement ve
a newer form of a retirement savings plan
an individual retirement arrangement that, except as explained below, is subject to the rules that apply to a traditional IRA
an investment vehicle that provides federal tax payers with a tax-advantaged method of preparing for retirement
an IRA in which contributions are nondeductible when they are made
a nondeductible account that features tax-free withdrawals on contributions
a non-deductible IRA, as opposed to what we are now calling a traditional IRA, for which you can get a tax deduction
a nondeductible IRA that allows you to accumulate earnings on an entirely tax-free basis-provided the funds are used for qualified purposes
a nondeductible IRA which features tax-free withdrawals for certain distribution reasons after a five year holding period
a particular particular type of account
a personal retirement fund that an individual can establish by making contributions each year
a personal savings plan that provides tax advantages for setting aside money for your retirement
a personal savings plan which allows savings for retirement and offers great tax advantages
a retirement account where you can invest money and let it grow tax free
a retirement savings account that you pay taxes on the money before you put it in the savings account
a retirement savings account with specific tax benefits
a savings account that allows your retirement investments to grow entirely tax free
a special kind of retirement account
a special type of account
a special type of individual retirement plan
a special type of IRA where you pay no tax (there are details of course)
a super deal because you never pay taxes on gains
a taxable investment, but after five years, qualified distributions may be taken tax-free
a tax-advantaged retirement account that you fund with after-tax dollars, but qualified distributions from the account are tax-free
a tax-deferred contribution plan for folks who don't make above a certain amount of money
a tax-deferred retirement account that turns the traditional IRA
a tax-deferred retirement account where the contributions are not tax deductible
a tax-exempt account, but the account holder must meet certain conditions
a trust or custodial account established for you (and your beneficiaries) in which the amounts contributed are not deductible on your federal income tax return, but earnings accumulate tax-free
a type of Individual Retirement Plan that allows eligible
a type of IRA account that does not defer income taxes on assets placed in it
a very unique retirement plan in the IRA family
This variant of the traditional IRA has a few unique features. Where funds can't be withdrawn from an IRA tax-free and without penalty until the holder is 59 1/2, with the Roth IRA funds can be withdrawn tax- and penalty-free sooner, to pay for tuition or a first-time home purchase. The holder is not required to make withdrawals at any point. There is an income cutoff for eligibility.
A tax-preferred savings and investment account authorized by Internal Revenue Code section 408A. The contributions are made with after tax dollars. The earnings are not presently taxed or never taxed if certain rules of distribution are met.
A type of Individual Retirement Plan as defined in Section 7701 (a)(37) of the Internal Revenue Code. Roth IRA's have higher AGI limits, contributions are never tax deductible, all distributions can be tax free (not merely tax deferred), and distributions are never mandatory.
A type of IRA funded with nondeductible contributions or amounts converted (and taxed) from another type of IRA. Qualified distributions from a Roth IRA are free from income tax. Contributions or conversions to a Roth IRA may be made only in years in which the individual's modified adjusted gross income within specified limits.
A retirement savings plan that allows a person to contribute funds for retirement. Contributions are not tax deductible, but earnings are tax free, subject to certain conditions.
A special type of IRA under which distributions may be tax-exempt. Individuals may make nondeductible contributions into a Roth IRA if certain income requirements are met. Qualified distributions from a Roth IRA are tax-free.
A nondeductible IRA introduced by the Taxpayer Relief Act of 1997. Distributions are tax free if they meet certain requirements (income, time since the Roth IRA was established, age of the Roth IRA owner, etc.).
An Individual Retirement Account based on after-tax contributions. Earnings on contributions and distribution of funds are not taxed.
A tax-deferred retirement account that allows annual nondeductible contributions of up to $2,000. Qualified distributions from a Roth IRA may also be tax-free.
Is a retirement account created by the Taxpayer Relief Act of 1997. It is established with after-tax dollars but enjoys the benefits of nontaxable growth and nontaxable withdrawals. These nontaxable withdrawals are subject to certain criteria. Unlike the ordinary IRA account, the Roth IRA does not require minimum distributions at a specified age. Also, there may be favorable tax treatment for estate purposes.
A retirement plan that offers no upfront deductions for contributions but instead offers income tax free withdrawals for owners and beneficiaries if certain provisions are met.
An IRA account/annuity in which earnings on contributions are not taxed, as long as contributions have been in a Roth account/annuity for five years, and the account holder is at least age 59½, disabled or deceased. Contributions to a Roth IRA are not tax deductible.
A tax-deferred retirement account. Slightly different from a regular IRA because contributions to a Roth IRA are not tax-deductible. However, there is no tax on withdrawals as long as the taxpayer is age 59 and the account has been open for at least five years. back to menu
A Roth IRA is an individual retirement account from which you can withdraw your earnings completely tax free any time after you reach age 59 1/2, provided your account has been open at least five years. However, to qualify to contribute to a Roth IRA, your income must be less than the level set by Congress. You may also qualify to convert a traditional IRA to a Roth IRA if your modified adjusted gross income (MAGI) in the year you convert is less than $100,000, whether you are single or married.
An account that allows one to save after-tax dollars, which then grow tax-free if used for retirement.
Is a nondeductible tax-free retirement plan established under the Tax Relief Act of 1997. Developed for single people with income levels of $95,000 to $110,000, married couples with a combined income of $150,000 to $160,000 or less. Maximum contribution is $4000 (year 2005-2007) annually for an individual. Contributions are not tax deductible as with a traditional IRA. Contribution period may exceed age 70 1/2.
A personal retirement savings vehicle created by the Tax Payer Relief Act of 1997. A Roth IRA allows certain investors to make non-deductible contributions of up to $2,000 annually, and provided certain requirements are met, offers tax-free and penalty-free withdrawals for important financial needs in addition to retirement.
An individual retirement arrangement to which nondeductible contributions may be made (subject to certain AGI phase-outs), and the distributions of which are generally nontaxable.
Contributions are not deductible but distributions can generally be withdrawn tax free.
A tax-deferred retirement account. Different from a regular IRA (Individual Retirement Account), contributions to a Roth IRA are not tax-deductible, but there is no tax on withdrawals as long as the taxpayer is 59 1/2 years of age and the account has been open for 5 years.
An IRA authorized on or after January 1, 1998, in which: (1) Contributions to the account are not deductible; (2) "qualified" distributions (i.e., withdrawals) from the account are not taxable; and (3) earnings on the account are taxable only when a withdrawal is not a "qualified" distribution.
An Individual Retirement Account that allows contributors to invest up to $2,000 per year (in 2001), and to withdraw the principal and earnings totally tax-free under certain conditions.
A nondeductible IRA that allows tax-free withdrawals when certain conditions are met. Income and contribution limits apply.
An individual retirement plan that bears many similarities to the Traditional IRA. Contributions are never deductible, and qualified distributions are tax-free. A qualified distribution is one that is taken at least five years after the taxpayer established his/her first Roth IRA and when he/she is age 59Â1/2, disabled, or using the withdrawal to purchase a first home (limit $10,000), or deceased (in which case the beneficiary collects).
A type of Individual Retirement Account (IRA) in which contributions are not tax deductible but withdrawals may be tax free.
An individual retirement account to which contributions are not tax-deductible. Withdrawals from the account are tax-free. See All About IRAs: The Ten Types.
An Individual Retirement Account (IRA) which will allow you to save money on a tax free basis, provided you meet the eligibility requirements and holding period rules.
It is a type of IRA available in 1998 that allows for after-tax contributions up to the lesser of $2,000 or 100% of earned income. The most significant feature of the Roth IRA is that distributions are not required during the owner's lifetime and, when taken, distributions are tax free as long as the account has been in existence for five years and the distributions are taken after age 59 1/2.
Individual Retirement Account that allows contributors to invest funds based on their taxable compensation and Modified Adjusted Income (MAGI). Roth IRA's are nondeductible accounts that feature tax-free (free from federal income tax) withdrawals for certain distribution reasons after a five-year holding period. For more information, click here.
A special form of IRA for which the owner receives no income tax deduction for contributions, but the account does accumulate tax-deferred. Most significantly, withdrawals from the Roth IRA are not subject to income taxation.
An individual retirement account that allows you to put up to $2,000 (within certain income limitations) a year away non-tax deductible with the benefits of being able to withdraw the earnings tax free in the future. Click the links below for the other pages of the glossary. Glossary A-D Glossary E-H Glossary I-M Glossary S-W Site Map 1 Site Map 2 Site Map 3 Site Map 4 Resources/Partners Search this site or the web powered by FreeFind Site search Web search Your Dollars And Sense-Budgets.Com Helping You To Keep More Of Your Dollars And Cents
An individual retirement account (IRA) in which earnings on contributions are not taxed, as long as the contributions have been in the account for five years, and the account holder is at least age 59 1/2, disabled or deceased. Contributions to a Roth IRA are not tax deductible.
A type of Individual Retirement Account (IRA), which allows funds to grow tax-free, subject to certain restrictions. Taxes are paid on contributions to a Roth IRA, but qualified withdrawals are tax-free. There is no requirement to begin taking distributions.
An individual retirement account using after-tax contributions. Distributions of both investments and earnings that meet certain guidelines can be withdrawn tax-free from Roth IRAs.
A nondeductible IRA introduced by the Taxpayer Relief Act of 1997. Distributions from a Roth IRA are tax-free provided they meet certain requirements.
Contributions to Roth IRAs, which were introduced in 1998, are not deductible. Earnings grow tax free and qualified withdrawals are also tax free.
A type of Individual Retirement Account that allows retirement savings to grow tax-free. You pay taxes on contributions, but not on withdrawals (subject to certain rules). To participate in a Roth IRA, taxpayers are subject to certain income limits.
An Individual Retirement Account that allows taxpayers to contribute up to $2,000 per year, and to withdraw the principal and earnings totally tax-free under certain conditions. Unlike a traditional IRA, a taxpayer cannot take a tax deduction for his or her contributions to a Roth IRA plan. Unlike payments that are withdrawn tax-free from a Roth IRA plan, payments withdrawn from a traditional IRA plan are fully taxable as income.
An individual retirement fund. Contributions are not tax deductible, but withdrawals are tax exempt if an individual has been in the plan at least five years and is at least 59-1/2. Income limits and additional rules apply.
an Individual Retirement Account which is funded with after-tax dollars; any returns are not taxed upon withdrawal, but will be subject to an early withdrawal penalty unless certain criteria are met.
A Roth IRA is also a personal savings plan but operates somewhat in reverse compared to a traditional IRA. For instance, contributions to a Roth IRA are not tax deductible while contributions to a traditional IRA may be deductible. However, while distributions (including earnings) from a traditional IRA may be included in income, the distributions (including earnings) from a Roth IRA are not included in income. For both IRA types – traditional and Roth – earnings that remain in the account are not taxed. A Roth IRA can be established at the same types of financial institutions as a traditional IRA. To learn more about IRAs click the link.
Individual retirement account for which contributions are taxed but qualified distributions are not. Secondary Bond
Contributions to this IRA are not deductible and qualified distributions may be tax-free.
An individual retirement account to which you may be able to contribute up to $4,000 per year. Contributions are not tax deductible, but qualified withdrawals may be tax free. Certain income restrictions apply.
An IRA in which earnings on contributions are not taxed, as long as the initial contribution has been in the account for five years before being withdrawn and the withdrawal occurs after the account holder is at least age 59, disabled, deceased or is purchasing his or her first home. Contributions to a Roth IRA are not tax-deductible.
A kind of Individual Retirement Account. The contributor saves no taxes on the contributions she makes to a Roth IRA, but qualifying withdrawals are federal tax-free. Roth IRAs may be more convenient if the investor is not sure whether she will need the money for education or for retirement and if the account owner will be age 59 ½ or older when the funds are needed. ï¿1/2 ï¿1/2 ï¿1/2 ï¿1/2
See Individual Retirement Accounts.
A Roth IRA is an individual retirement plan, first available in 1998, that permits only after-tax contributions; earnings are not taxed, and qualified distributions of earnings and principal are generally tax-free.
A type of IRA, established by the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Contributions are not tax deductible, but withdrawals, subject to certain rules, are not taxed at the federal level.
A savings mechanism in which contributions are nondeductible, the funds grow tax-free, and withdrawals are tax-free provided certain conditions are met. The Taxpayer Relief Act of 1997 created Roth IRAs for individuals who do not qualify for traditional IRAs due to their income level or participation in employer-sponsored retirement plans.
An IRA established in the Taxpayer Relief Act of 1997 which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free. Taxes are paid on contributions, but withdrawals, subject to certain rules, are not taxed at all. ales Charge or Load: An amount charged for the sale of fund shares, usually those sold by brokers or other sales professionals. By regulation, a mutual fund sales charge may not exceed 8.5% of an investment purchase. The charge is reflected in the offering price and may vary depending on the amount invested and the fund chosen.
An IRA that enables your earnings to grow tax free, if certain conditions are met. Roth IRA contributions are not tax deductible, and are purchased with after-tax dollars.
A Roth IRA is an individual retirement account (IRA) allowed under the tax law of the United States. Named for its chief legislative sponsor, U.S. Senator William V.