Because a Roth IRA is an after-tax account, all income and gains generated by the Roth IRA would be tax-free, which would allow the Roth IRA to grow more rapidly than a taxable account
New York, NY (PRWEB) January 17, 2014
IRA Financial Group, the leading facilitator of “checkbook control” self-directed Roth IRA LLC solutions, announces the introduction of its newly designed Roth IRA calculator application. The self-directed Roth IRA calculator application will allow individuals to view the very attractive tax benefits to use a self-directed Roth IRA to make investments through. “Because a Roth IRA is an after-tax account, all income and gains generated by the Roth IRA would be tax-free, which would allow the Roth IRA to grow more rapidly than a taxable account, “ stated Adam Bergman, a tax partner with the IRA Financial Group.
The primary advantage of using a Self-Directed Roth IRA LLC to make investments is that all income and gains associated with the Roth IRA investment grow tax-free and will not be subject to tax upon withdrawal or distribution. This is because unlike traditional IRAs, you are generally not subject to any tax upon taking Roth IRA distributions once you reach the age of 59 1/2. In general, the longer the time period, the more advantageous the Roth IRA is because of the powerful advantages of compounding.
Americans love to spend and hate to save. Americans have one of the lowest savings rates for developed countries. Americans are the ultimate consumers, and that definitely plays a role. Most people don't understand the basic concepts of retirement planning and how crucial it is, largely because they're not widely taught in our high schools or even our colleges and universities. “The intent behind offering the Roth IRA calculator application is to help show the amazing retirement benefits for using a Roth IRA as a retirement and investment vehicle, “ stated Mr. Bergman.
According to Mr. Bergman, the Self-Directed Roth IRA calculator will help demonstrate the enormous asset growth potential of using a Roth IRA. For example, assume Joe, who is thirty years old, decided to start a Self-Directed Roth IRA real estate. Joe had a current Roth IRA balance of zero at that time. Assume Joe decided to make annual Roth IRA contributions of just $3500 each year until he reached the retirement age of 70. Further assume that Joe was able to generate an average annualized rate of return of 9% and the prevailing tax rate was 25%. At age $70 with a Roth IRA, Joe would have $1,289.022 tax-free in his Self-Directed Roth IRA. In contrast, if invested outside of a retirement account, assuming a 25% tax rate, the individual would have just $699,475. Hence, the Self-Directed Roth IRA allowed the individual to accumulate an additional $589,547 of wealth.
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 “checkbook control checkbook Roth IRA Facilitator. 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 IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.