Roth IRA

E412548

A Roth IRA is a U.S. individual retirement account that allows after-tax contributions to grow tax-free, with qualified withdrawals in retirement also being tax-free.

All labels observed (3)

How this entity was disambiguated

Statements (51)

Predicate Object
instanceOf individual retirement account
tax-advantaged retirement account
accountOwner individual
administeredBy Internal Revenue Service
allowsCatchUpContributions yes
allowsEarlyWithdrawalsOfContributions yes
beneficiaryDesignationAllowed yes
canBeConvertedFrom U.S. Individual Retirement Accounts
surface form: traditional IRA
canBeInvestedIn ETFs
bonds
certificates of deposit
money market funds
mutual funds
stocks
canBeSelfDirected yes
catchUpEligibilityAge 50
contributionLimitVariesBy age
tax year
contributionType after-tax contributions
conversionTaxTreatment converted pre-tax amounts are taxable
country United States of America
surface form: United States
createdByAct Taxpayer Relief Act of 1997
currency US dollar
surface form: U.S. dollar
earlyWithdrawalOfContributionsPenalty no 10% penalty on contributions
earlyWithdrawalOfContributionsTax generally tax-free
earlyWithdrawalOfEarningsPenalty may incur 10% penalty
earlyWithdrawalOfEarningsTax generally taxable if not qualified
eligibilityBasis earned income
eligibilityRestrictedBy modified adjusted gross income
governedBy Internal Revenue Code section 408A
hasContributionLimit yes
hasIncomeLimit yes
introducedIn 1997
legislatedBy United States Congress
surface form: U.S. Congress
namedAfter William Roth
ownerMustHaveCompensation yes
penaltyExceptionsInclude certain medical expenses
disability
first-time home purchase
qualified education expenses
substantially equal periodic payments
primaryGoal tax-free income in retirement
qualifiedDistributionRequiresAge 59½
qualifiedDistributionRequiresHoldingPeriod 5 years
RMDsDuringOwnerLifetime not required
spousalIRAAllowed yes
spousalIRACondition married filing jointly
subjectToRequiredMinimumDistributions no
taxTreatmentOfContributions not tax-deductible
taxTreatmentOfEarnings tax-free growth
taxTreatmentOfQualifiedWithdrawals tax-free

How these facts were elicited

Referenced by (3)

Full triples — surface form annotated when it differs from this entity's canonical label.

MyRA retirement savings initiative relatedTo Roth IRA
this entity surface form: Roth individual retirement account
William Roth notableWork Roth IRA
this entity surface form: Roth Individual Retirement Account legislation