Taxes could potentially increase in 2013, and investors who convert now could pay a potentially lower tax rate than if they waited until 2013 or beyond.
Cleveland, OH (PRWEB) December 05, 2012
The unknown future of tax rates beyond 2012 makes now a crucial time for investors to review retirement savings accounts and determine the best strategies for keeping as much of their nest egg as possible. Converting a retirement account to a Roth IRA or opening a Roth account can be a beneficial step for many, according to Equity Trust Company, a leading self-directed IRA custodian.
Unlike traditional IRAs, qualified withdrawals from Roth IRAs are tax-free. For this reason, Roth IRAs are especially attractive to those whose IRA has lost money since they opened it, or for those who find themselves in a lower tax bracket than they were upon the IRA’s inception. Plus, those who estimate they’ll be in a higher tax bracket down the road can save on the taxes they would have paid later with taxes on traditional IRA withdrawals.
Are Tax Hikes Likely in the Near Future?
In addition to the benefits of the accounts themselves, there’s even more reason to consider opening or converting to a Roth IRA in the remainder of 2012. Taxes could potentially increase in 2013, and investors who convert now could pay a potentially lower tax rate than if they waited until 2013 or beyond. The tax savings, combined with tax-free qualified withdrawals later, could equal a huge total savings for the account holder.
Advantages of Converting Explained in Exclusive Webinar
Investors can learn more about the potential advantages of Roth conversion and if they qualify by visiting Equity Trust’s Roth website and accessing a free, on-demand webinar that explains more about Roth conversion and many other benefits of taking action now.
Those who want more details about Roth conversions or to take action immediately can call 877-819-9519.
About Equity Trust Company
Equity Trust Company, with its corporate headquarters in Greater Cleveland, Ohio and operations in Waco, Texas and Sioux Falls, South Dakota, is at the forefront of the self-directed retirement plan industry. The Company specializes in the custody of alternative assets in self-directed IRAs, Coverdell Education Accounts, Health Savings Accounts and qualified business retirement plans. Along with its affiliates, Equity Trust Company provides services to more than 130,000 individuals and businesses nationwide with approximately $11 billion in assets under custody. Since 1974, the company and its affiliates have helped investors make tax-free profits through education, innovation, and a commitment to understanding individual needs. Visit http://www.TrustETC.com for more information.