A "Roth IRA" is a type of Individual Retirement Account (IRA) authorized by U.S. federal law. Individuals may make nondeductible contributions into a Roth IRA if certain income requirements are met. Qualified distributions from a Roth IRA are tax-free. A qualified distribution is one that is taken at least five years after the taxpayer established the first Roth IRA and when the taxpayer is age 59½, disabled, or using the withdrawal to purchase a first home (limit $10,000 withdrawal), or deceased (in which case the beneficiary collects). A Roth IRA may invest in a variety of options such as in stocks or mutual funds.