Roth IRA

A retirement savings vehicle, wherein earnings accrue on a tax-deferred basis and distributions are tax-free if qualified. A Roth IRA can be either of the following:

 

 

Contributions to Roth IRAs are not tax-deductible.

In addition to having taxable compensation/income, an individual must meet income requirements in order to be eligible to contribute to a Roth IRA. The MAGI limits can be found here under the definition of IRA

 

(Source: Retirement Dictionary)