Roth IRAs
An individual retirement account that is funded with amounts that have already bene taxed. Earnings grow tax-deferred and qualified distributions are tax-free.
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Disclosure statement
Definition A document provided to participants, explaining certain provisions in non-technical terms. For IRAs, each participant must be provided with a disclosure statement , which
Disclaimer ( Qualified Disclaimer )
Definition A written document, wherein the beneficiary irrevocably refuses to accept assets they would otherwise inherit. The disclaimer must meet the following requirements in order
Direct conversion
Definition A Roth Conversion that occurs directly between the delivering retirement account and receiving Roth IRA. The delivering account can be either of the following:
Determination letter
Definition A letter issued by the IRS to a plan sponsor, indicating whether the IRS has determined that a retirement plan is qualified. Form 5300
Designated Roth Contribution
Definition An elective deferral contribution to a section 401(k) or 403(b) plan that satisfies the following requirements: Has been designated irrevocably by a participant as
Designated Roth Account
Definition A designated Roth account (DRA) can be a DRA-401(k) or a DRA-403(b), commonly known as Roth 401(k) and Roth 403(b). DRAs became effective for
Designated financial institution (DFI)
Definition A financial institution ( such as a bank , insured credit union, savings and loan, or IRS approved non-bank custodians-such as a brokerage firm)
