Separate account created by the Tax Relief Act of 1997 and named after Senator William Roth Jr. of Delaware. A working individual may contribute up to 100% of compensation or $2000. The lesser amount applies for each taxable year; and, the contribution must be made by April 15 (or the tax filing deadline) of the following year. A nonworking spouse can contribute up to $2000. These contributions are subject to compensation limits (not included as compensation is income received from pensions, annuities, or as deferred compensation) for the adjusted gross income (AGI) in the following manner: (1) single individuals with an AGI of less than $95,000 may contribute up to $2000; (2) married individuals filing a joint income tax return with an AGI less than $150,000 may contribute up to $2000; (3) partial contributions may be made by single individuals with an AGI between $95,000 and $110,000 and by married individuals with an AGI between $150,000 and $160,000; and, by married individuals filing separately with an AGI of less than $10,000. These contributions are not deductible for federal income tax purposes. The funds once contributed grow on a tax-free basis. Tax-free withdrawals from this IRA may be made after it has been in existence for at least five years and the individual has reached at least age 59'A. If death or permanent disability occurs, tax-free withdrawals can also be made. Tax-free withdrawals up to $10,000 are also permitted for the purchase of a first home. Funds may be withdrawn for educational purposes subject to the payment of income tax, but there is no 10% penalty paid, as is the case with the traditional IRA. There is no maximum age by which the individual must start taking distributions as there is at the age of 70'A with the traditional IRA. Even though contributions are not tax-deductible, these contributions can be withdrawn tax-free at any time while the earnings accumulate on a tax-deferred basis after age 59, provided the funds have been in the account for at least five years. Conversions from a traditional IRA to a Roth IRA may be made provided the IRA owner has an AGI of $100,000 or less. Upon conversion to a Roth IRA, income tax is payable on the taxable portion of the amount converted from the traditional IRA (earnings and deductible contributions). The amount converted from a traditional IRA to a Roth IRA is subject to a 10% tax penalty if withdrawn within five years of the conversion.