American IRA Discusses Understanding Self-Directed Roth IRA Conversions

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Self-Directed Roth IRA conversion is a method of funding that can yield tremendous benefits for investors. Recently, American IRA—a Self-Directed IRA administration firm in North Carolina—explained how they work at the company blog.

American IRA CEO

American IRA CEO, Jim Hitt

A Roth conversion occurs when amounts are moved from a traditional retirement account to a Self-Directed Roth IRA

A Roth IRA can be a powerful tool for retirement investors. For those that want more control, a Self-Directed Roth IRA can mean having access to a wide variety of diversified assets, such as real estate and even precious metals. But many investors wonder how to adequately fund their Roth IRA. Recently, American IRA—a Self-Directed IRA administration firm out of North Carolina—took to the company blog to explain one such strategy: Self-Directed Roth IRA conversions.

The post started out by defining the conversion. “A Roth conversion occurs when amounts are moved from a traditional retirement account to a Self-Directed Roth IRA,” wrote the post. This means that “conversion” is true to definition, with an investor “converting” a different type of IRA into a Roth IRA. That moves funds easily across retirement accounts and lets investors work with the advantages of the Roth IRA.

Investors have the option of converting assets from a Traditional IRA, Self-Directed SEP IRA, or Self-Directed SIMPLE IRA to a Self-Directed Roth IRA, according to the post. Another option is a rollover of assets from a traditional account, using an employer-sponsored retirement plan, into a Self-Directed Roth IRA. However, investors should note that the amount must “first be eligible for rollover,” according to the post.

“The Roth IRA gives investors plenty of advantages,” according to Jim Hitt, CEO of American IRA. “It lets people grow their investments tax-free, instead paying the income taxes up front because the contributions are not deductible. Investors then used already-taxed money to build up a retirement nest egg. For many people, this is the answer to many of their worries about retirement.”

The post then went on to explain the tax treatment of Roth IRA conversions, noting what investors can and should expect come tax time. Issues such as withholding and tax reporting are essential for investors who want to avoid penalties and fines, which can wipe out much of the gains made by the Roth IRA in the first place.

For more information on Self-Directed Roth IRA conversions, visit the comprehensive post at Interested parties can contact American IRA at 866-7500-IRA.

American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC."

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American IRA, LLC
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