The Trump victory and a low tax income policy will likely lead more tax advisors to consider and recommend the Roth IRA or Roth 401(k) contribution over a pre-tax retirement contribution
New York, NY (PRWEB) November 21, 2016
IRA Financial Group, a leading provider of self-directed IRA and Solo 401(k) plans, expects to see a surge in the popularity of the self-directed Roth IRA. Based on Donald Trump’s Presidential Election victory, Mr. Trump’s tax plan has called for a reduction of income tax rates on individuals.
According to Adam Bergman, a partner with the IRA Financial Group, "when a tax professional helps a client decide between making a pre-tax or Roth IRA or 401(k) plan contribution, one of the primary items the advisor will look at is the financial impact a deduction will have on the taxpayer’s income tax liability. The general thinking goes that if there is less tax to pay then taking a tax deduction would have less of a financial impact than in a higher tax environment, For example, if an individual earns $40,000 in annual income, under the Trump tax plan he or she would be subject to $4800 in taxes, versus a 25% income tax rate in 2016. Sure, the IRA contribution deduction would be beneficial in reducing any income tax due, but such a deduction would likely have a lower financial impact on the taxpayer than with higher tax rates likely making the Roth contribution a more attractive option for many taxpayers. The Trump victory and a low tax income policy will likely lead more tax advisors to consider and recommend the self-directed Roth IRA or Roth 401(k) contribution over a pre-tax retirement contribution."
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 self-directed IRA and Roth Solo 401k plan solutions. 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.
IRA Financial Group proudly announces the latest book titled written by tax partner Adam Bergman, Turning Retirement Funds into Start-Up Dreams – financing and retirement funding options for your start-up business is now available for purchase on Amazon. . This is the third book in a four-part series on self-directed retirement plans. The first two books: “The Checkbook IRA” and “Going Solo” are also available on Amazon.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.