Definition: A retirement account providing tax-free growth. Anyone with earned income of at least $5,000 can contribute up to $5,000 to their Roth IRA for the 2008 tax year. (Those 50 or over can contribute $6,000.) With few exceptions, to benefit from the tax-free growth of a Roth IRA, distributions may not occur until the account has been opened at least 5 years and the account owner is at least 59 1/2 years old.
Also Known As: Roth IRA