Roth IRA
Tax-free withdrawals later
A Roth IRA is a retirement savings account in the United States where contributions are made with after-tax income, but qualified withdrawals—including earnings—are tax-free.
Named for Senator William Roth, who championed the legislation.
The Roth structure contrasts with traditional IRAs, where contributions may be tax-deductible but withdrawals are taxed: I'm putting money in a Roth IRA so I won't owe taxes when I retire.
Tax-advantaged retirement savings account
- pensionRetiree's ongoing benefit
- nest eggSaved money for later
- Social SecurityFederal old-age insurance program
- rolloverVehicle flipping accident
contribution limits · distributions · withdrawal · early withdrawal · beneficiary · golden years · financial planning · estate planning
Ownership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
- ETFsExchange-listed investment baskets
- index fundsSecurities mirroring market indices
asset allocation · diversification · portfolio · brokerage · dividends · capital gains · risk tolerance · rebalancing
- income limitsMaximum qualifying earnings
- phase-outGradual discontinuation process
- tax bracketTaxable income category
401(k)
Tax-advantaged retirement savings account
- pensionRetiree's ongoing benefit
- nest eggSaved money for later
- Social SecurityFederal old-age insurance program
rollover · contribution limits · distributions · withdrawal · early withdrawal · beneficiary · golden years · financial planning · estate planning · retiree
stocks
Ownership stakes or inventory
- bondsTies that unite
- mutual fundsCollectively managed securities portfolios
- ETFsExchange-listed investment baskets
index funds · asset allocation · diversification · portfolio · brokerage · dividends · capital gains · risk tolerance · rebalancing · equities
tax-free growth
- income limitsMaximum qualifying earnings
- phase-outGradual discontinuation process
- tax bracketTaxable income category
- Tax-Free Investmentsmunicipal bonds, state bonds, health savings account
- financebank, CFO, banks, controller, finance
- retirementretire, retirees, retiree, pension plan, pension
- savingssavings account, piggy bank, online savings, savings bonds, savings plan
- accountsbank account, checking account, savings account, joint account, personal account
- financial planningfinancial planning, budget, financial plan, financial goals, investment
Roth IRAspending
Outlaying of funds
consumption · living paycheck to paycheck · consumer debt · credit card debt · immediate gratification
retirement, IRA, Roth, Ira