Small Business Dictionary

Roth Individual Retirement Account (IRA)

A Roth Individual Retirement Account (IRA) is a modified investment account that lets you set aside and save up to an IRS-determined dollar amount each year. Unlike a traditional IRA that allows for tax-deferred growth on retirement assets, a qualified Roth Individual Retirement Account (IRA) enables withdrawals to be tax-free after age 59.5, as long the account has been held for at least five years. Please contact your accountant or investment advisor for specific recommendations and advice.