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An '''Roth individual retirement arrangement''' ('''Roth IRA''') is a personal savings plan which allows one to [[investment|invest]] or set aside [[money]] for [[retirement]], while offering [[deferred tax]] / [[tax]] advantages. <ref>http://www.irs.gov/taxtopics/tc451.html</ref>

An '''Roth individual retirement arrangement''' ('''Roth IRA''') is a personal savings plan which allows one to [[investment|invest]] or set aside [[money]] for [[retirement]], while offering [[deferred tax]] / [[tax]] advantages.<ref>http://www.irs.gov/taxtopics/tc451.html</ref>

The Roth retirement plan under US [[law]] that is generally not taxed, as long as certain conditions are met. The US tax law allows reduction in tax on a limited amount of [[saving]] for retirement. Roth IRA's main difference from the majority of tax advantaged retirement plans is that, instead of granting a [[tax break]] for money placed into the plan, the tax break is granted on the money withdrawn from the plan during retirement.

The Roth retirement plan under US [[law]] that is generally not taxed, as long as certain conditions are met. The US tax law allows reduction in tax on a limited amount of [[saving]] for retirement. Roth IRA's main difference from the majority of tax advantaged retirement plans is that, instead of granting a [[tax break]] for money placed into the plan, the tax break is granted on the money withdrawn from the plan during retirement.

Roth IRAs can be contain [[investment]]s in [[securities]], most often [[common stock]]s and [[bond]]s, typically through [[mutual fund]]s. Roth IRAs also, less commonly, allow other investments, including [[real estate]], [[derivative]]s, notes, [[certificates of deposit]], and  are possible). Roth IRAs also allow [[annuity|annuities]] bought from a [[life insurance]] company.  In addition, under Internal Revenue Code Section 408(m)

Roth IRAs can be contain [[investment]]s in [[securities]], most often [[common stock]]s and [[bond]]s, typically through [[mutual fund]]s. Roth IRAs also, less commonly, allow other investments, including [[real estate]], [[derivative]]s, notes, [[certificates of deposit]], and  are possible). Roth IRAs also allow [[annuity|annuities]] bought from a [[life insurance]] company.  In addition, under Internal Revenue Code Section 408(m)

, both participant-directed accounts and IRAs '''cannot''' invest in collectibles, such as art, antiques, gems, coins, or alcoholic beverages, and they can invest in certain precious metals only if they meet specific requirements.

, both participant-directed accounts and IRAs '''cannot''' invest in collectibles, such as art, antiques, gems, coins, or alcoholic beverages, and they can invest in certain precious metals only if they meet specific requirements.

==Further Reading==

==Further reading==

{{Cite book

{{Cite book

  |last=* Bledsoe |first=John D.

  |last=* Bledsoe |first=John D.

  |oclc=40641031}}

  |oclc=40641031}}

==External Links==

==External links==

* [http://www.irs.gov/pub/irs-pdf/p590.pdf IRS Publication 590 (IRAs)] (pdf)

* [http://www.irs.gov/pub/irs-pdf/p590.pdf IRS Publication 590 (IRAs)] (pdf)

* [http://www.forbes.com/forbes/2010/0607/investing-roth-ira-conversion-fidelity-tax-rothify-401k.html Rothify Your 401(k)] Forbes.com

* [http://www.forbes.com/forbes/2010/0607/investing-roth-ira-conversion-fidelity-tax-rothify-401k.html Rothify Your 401(k)] Forbes.com

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{{Economic preparedness topics}}

[[Category : Economic Preparedness]]

[[Category:Economic Preparedness]]

[[Category:Individual Retirement Accounts]]

[[Category:Individual Retirement Accounts]]