With a Roth 401(k) Plan, a forty-year old individual who makes annual maximum Roth contributions and receives just a 5% annual return can have over $1 million dollars tax-free by the age of 591/2
Miami, FL (PRWEB) February 27, 2012
IRA Financial Group introduces the Roth 401K Plan – the ultimate retirement solution for the self-employed. With a Roth 401(k) Plan, a self-employed individual can contribute up to $22,500 annually to the Roth 401K Plan and enjoy tax-free returns. With IRAs, those who earn high incomes are disallowed from contributing to a Roth IRA or, in most years, converting their IRA to a Roth IRA. The Solo 401(k) plan contains a built in Roth sub-account which can be contributed to without any income restrictions. Furthermore, one can only contribute up to $5,000 ($6,000 if the individual is over the age of 50) to a Roth IRA, however, with a Roth Solo 401K Plan, a self-employed individual can contribute up to $17,000 annually ($22,500 if the individual is over the age of 50). “With a Roth 401(k) Plan, a forty-year old individual who makes annual maximum Roth contributions and receives just a 5% annual return can have over $1 million dollars tax-free by the age of 591/2”, Stated Adam Bergman, a tax attorney with the IRA Financial Group. “In fact, with income tax rates sure to increase in the future, having tax-free access to your retirement funds in a huge advantage,” stated Mr. Bergman.
Qualified distributions from a Roth 401K are not includible in income or subject to the 10% early withdrawal penalty. A qualified distribution is a distribution to an owner after the owner has reached age 59 1/2 (or who is disabled, a first-time home buyer, or in the case of a beneficiary of the estate, death) and the Roth 401K has been funded for a 5-year period, beginning on the first day of the tax year in which a conversion from a regular IRA or pre-tax 401(k) is made or for which a Roth 401K contribution is made, and ending with the last day of the 5th year from the beginning year.
Because federal income tax rates are at an historical low, it is generally assumed that tax rates will increase over the next ten to twenty years. Therefore, while a Roth 401K will eliminate ones ability to receive a tax deduction in the year of the contribution, over the long run the individual probably achieve a greater tax savings because the withdrawals from the Roth IRA will be tax-free.
For real estate investors the Roth 401K Plan offers a highly attractive tax savings vehicle. With a Roth 401K real estate investors can keep more of thier profits by using the tax-sheltered funds in the account, rather than personal funds. There are no capital gains taxes on profits made from selling a piece of property. Rental income is non-taxable. As long as all of the fees related to the transaction are taken from the account and all profits are returned to it, there are no taxes, ever.
The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading provider of Roth 401(k) Plans. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.
To learn more about the Roth 401(k) Plan, please contact a Roth 401K Expert at 800-472-0646 or visit http://www.irafinancialgroup.com.
# # #