Roth IRAs
Scroll down for Roth IRA content: A Roth IRA is an individual retirement account that is funded with amounts that have already been taxed. Earnings grow tax-deferred and qualified distributions are tax-free. This category includes various content that focuses on Roth IRAs. Please check back often as we add more content.
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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)
Modified Adjusted Gross Income (MAGI)
Definition Modified Adjusted Gross Income (MAGI) is an individual’s adjusted gross income without taking into account any of the following amounts. IRA deduction. Student loan
