What is the definition of Roth IRA?
An IRA that enables earnings to grow tax free, if certain conditions are met. Roth IRA contributions are not tax deductible, and are purchased with after-tax dollars. Like traditional IRAs, contributions are limited to $2,000 per year. Eligibility is based on income (AGI) limits. Single taxpayers, may contribute to a Roth IRA if your AGI is under $110,000. For married filing joint taxpayers, the combined AGI must be under $160,000 (for 1999). Under EGTRRA the contribution limitations will increase to $3000 in 2002-2004, $4000 in 2005-2006 and $5000 in 2008.
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