What does the acronym "ROTH" stand for in Roth IRA?

The acronym "ROTH" in Roth IRA is derived from the name of Senator William Roth, who was instrumental in the creation of this type of retirement account through legislation in the 1990s. The Roth IRA allows individuals to make after-tax contributions to their retirement savings, providing the benefit of tax-free withdrawals in retirement, assuming certain conditions are met. This account type was designed to offer a unique alternative to traditional IRAs, which typically involve tax-deferred contributions and taxable withdrawals in retirement. Recognizing the origin of the name helps clarify the significance of the account structure established by Senator Roth's legislative efforts.