Roth IRAs
After-tax retirement accounts
Roth IRAs are individual retirement accounts funded with after-tax dollars, meaning withdrawals in retirement are tax-free.
Named for Senator William Roth, who championed their creation in 1997.
Unlike traditional IRAs, contributions aren't tax-deductible, but qualified distributions—including earnings—aren't taxed.
She maxed out her Roth IRA every year, knowing she'd pay no taxes on the growth.
Tax-advantaged retirement savings account
- nest eggSaved money for later
- golden yearsLater life stage
- retirement savingsMoney reserved for post-career
- tax-advantagedOffering tax benefits
contribution limits · early withdrawal penalty · conversion · rollover · beneficiaries · estate planning · Social Security · Medicare
Collected works or assets
- asset allocationDistributing investments strategically
- diversificationExpanding into varied areas
- stocksOwnership stakes or inventory
- bondsTies that unite
mutual funds · index funds · ETFs · equities · securities · capital gains · compound interest · dollar-cost averaging
Things given to help
- depositsMaterial settled or stored
- payroll deductionSum subtracted from wages
- annual limitMaximum permitted per year
- accumulationCollected mass over time
emergency fund · budgeting · financial goals · wealth building · principal · balance · financial discipline
- tax-advantagedOffering tax benefits
- income limitsMaximum qualifying earnings
- phase-outGradual discontinuation process
- tax bracketTaxable income category
401(k)
Tax-advantaged retirement savings account
- nest eggSaved money for later
- golden yearsLater life stage
- retirement savingsMoney reserved for post-career
tax-advantaged · contribution limits · early withdrawal penalty · conversion · rollover · beneficiaries · estate planning · Social Security · Medicare · retiree
portfolio
Collected works or assets
- asset allocationDistributing investments strategically
- diversificationExpanding into varied areas
- stocksOwnership stakes or inventory
bonds · mutual funds · index funds · ETFs · equities · securities · capital gains · compound interest · dollar-cost averaging · rebalancing
contributions
Things given to help
- depositsMaterial settled or stored
- payroll deductionSum subtracted from wages
- annual limitMaximum permitted per year
accumulation · emergency fund · budgeting · financial goals · wealth building · principal · balance · financial discipline
tax-free growth
- tax-advantagedOffering tax benefits
- income limitsMaximum qualifying earnings
- phase-outGradual discontinuation process
tax bracket · tax planning · tax-deferred · tax shelter · tax efficiency