Publication 590 |
2000 Tax Year |
What is a Roth IRA?
A Roth IRA is an individual retirement plan that, except as
explained in this chapter, is subject to the rules that apply to a
traditional IRA (defined below). It can be either an account or an
annuity. Individual retirement accounts and annuities are described in
chapter 1
under How Can a Traditional IRA Be Set Up?.
To be a Roth IRA, the account or annuity must be designated as a
Roth IRA when it is set up. Neither a SEP-IRA nor a SIMPLE IRA can be
designated as a Roth IRA.
Unlike a traditional IRA, you cannot deduct contributions to a Roth
IRA. But, if you satisfy the requirements, qualified distributions
(discussed later) are tax free. Contributions can be made to your Roth
IRA after you reach age 70 1/2 and you can leave amounts
in your Roth IRA as long as you live.
Traditional IRA.
A traditional IRA is any IRA that is not a Roth IRA, SIMPLE IRA, or
education IRA. Traditional IRAs are discussed in chapter 1.
Previous| First | Next
Publication Index | IRS-Forms Main | Home
|