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LSDefine

Simple English definitions for legal terms

Roth IRA

Read a random definition: T.C.M.

A quick definition of Roth IRA:

A Roth IRA is a type of savings account where you can put money in each year. You can't deduct the money you put in from your taxes, but you also don't have to pay taxes on the money you take out when you retire. You have to be at least 59 1/2 years old to take the money out without paying a penalty. It's named after a senator who helped create it.

A more thorough explanation:

A Roth IRA is a type of individual retirement account where a person can save money for their retirement. The account allows a person to contribute a certain amount of their earned income each year. The contributions and any interest earned in the account are not taxed until the money is withdrawn after the account holder reaches 59 1/2 years old. If the money is withdrawn before then, a penalty of 10% is applied.

For example, if a person earns $50,000 a year and contributes $5,000 to their Roth IRA, they will only be taxed on $45,000 of their income that year. When they reach 59 1/2 years old and withdraw the money, they will not have to pay taxes on the contributions or any interest earned.

A Roth IRA is different from a traditional IRA because contributions to a traditional IRA are tax-deductible when they are made, but the money is taxed when it is withdrawn. With a Roth IRA, contributions are not tax-deductible, but the money is not taxed when it is withdrawn.

Overall, a Roth IRA is a good option for people who expect to be in a higher tax bracket when they retire, as they will not have to pay taxes on the money they withdraw from the account.

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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