"Roth IRA"

A type of Individual Retirement Account in which contributions are not tax-deductible. (Compare this to a Traditional IRA where contributions may be tax-deductible.) One advantage of a Roth IRA is that when you withdraw funds between ages 59 1/2 and 70 1/2, no tax is owed on them. A second advantage is that you can withdraw contributions (not earnings) without penalty. Consult a tax advisor to learn about possible tax advantages. See IRAs.

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