Retirement Planning BlogRoll » Traditional IRA

admin — Thu, 10 Dec 2009 01:39:44 +0000

I often get asked, “How much can I put in my Roth IRA?” My answer is “Well, it depends.” Some of the primary factors that affect how much you can put in your Roth IRA are your age, if you have contributed to another IRA account and how much you’ve put in that other IRA account and your Modified Adjusted Gross Income. The other factor is the maximum amount you can put in your Roth IRA changes from year to year and these changes will reflect the cost of living and inflation.

Currently, if you are under age 50 you can contribute $5,000 per year to your Roth IRA. If you are over 50 then you are allowed an additional $1,000 per year as a catch-up allowance per year. So, in other words, you can put in $6,000 a year into your Roth IRA account if you’re over age 50.

The other factor is if you are contributing to another IRA account such as a traditional IRA. The amount you put in your traditional IRA can decrease the amount and offset the maximum amount you can put in your Roth IRA. You should contact Best IRA Rescue.com at (888) 938-5872 or contact your financial planner or accountant to see if you have other IRA accounts that you may be contributing to.

Your Modified Gross Adjusted Income (MAGI) can affect how much you can put in your Roth IRA as well. The Modified Gross Adjusted Income is the amount you claim on your tax return before you claim any deductions. For 2009, if you make over $166,000 per year for married couples filing joint or if you make over $105,000 as a filing single then you will enter a phase-out stage whereby the maximum you can end up putting or contributing to your Roth IRA account diminishes as your MAGI increases.

If you meet the criteria for allowing to contribute to your Roth IRA then you should contribute to a maximum amount you can afford. Remember, putting money in your Roth IRA account is after-tax dollars. This means that you pay your taxes first when you file your taxes then you contribute that remainder amount to your Roth IRA. The advantage of this is that when you reach age 59 1/2 you are allowed to withdraw your retirement investments tax-free.

On other hand, when you put money in your traditional IRA account you pay your taxes when you reach retirement at age 59 1/2. So, in other words, when you contribute to your traditional IRA it is before taxes. The disadvantage is that you must pay your taxes at retirement when you withdraw the money and you will most likely be paying much more taxes since your investment has grown. So, in general, the Roth IRA has good tax advantages over the long term.

You should determine how much you can put in your Roth IRA by creating a budget plan. You may talk to one of our representatives or discuss this with your financial planner or accountant. It’s quite easy to create a budget plan if you have a fixed income. For those who do not have a fixed monthly salary or the income varies from month-to-month then you will have to be more prudent with managing your finances. Having a basic plan based on your monthly income whether it’s fixed or varies will help you put money into your Roth IRA to build a comfortable nest egg in your retirement.

There is one other IRA retirement plan that does not have the Modified Gross Adjusted Income limits as the regular Roth IRA. This is called the Roth IRA on Roids or Roth on Roids(tm). The Roth IRA on Roids has no income level limits and offers IRA tax-savings with benefits of a guaranteed death benefit, guaranteed principal, tax-free growth, and tax-free distributions from your policy loans. This is a real tax-savings opportunity for those individuals that have a MAGI that exceeds the Roth IRA income limits. Contact us with any IRA questions at (888) 938-5872.

Visit Best IRA Rescue to read more articles on Roth IRA.

Roth IRA on Roids Improve Your IRA & Retirement Plan Investing

admin — Mon, 01 Jun 2009 01:59:08 +0000

How would you like to discover little known retirement wealth building tool that practically will pay for itself? You don’t have to go offshore to get tax free distributions for retirement, you don’t have to worry about tax free IRA distributions, and you don’t have to hide your money. It’s perfectly legal right here in the United States and your assets never leave the United States. The principle is guaranteed, you will never lose your money in the stock market, real estate market, commodity market, or any other market. There is a minimum return on your contribution, and if you die, your family will get a death benefit.

Introducing the “Roth on Roids”

So, exactly what is a Roth IRA on Roids? Well, it’s my own invention. I was listening to a seminar put together by Roccy DeFrancesco, who wrote a book called the Home Equity Management, and basically, the whole book is about repositioning your home equity so that you can buy a cash value life insurance, which in effect is a wealth building tool whereby there are no limits on how much you can contribute, you do not have to have a job or earned income, you do not have to have age limitations. It grows income-tax free, the principle is guaranteed. I was describing this to my son, and I was being very animated just like I found this great new tool. And as I’m going through it, I’m also telling him that the principle is guaranteed, you will never lose your money. You can’t do that with a Roth IRA or a traditional IRA. His comeback to me was, “Well, gee Dad, that sounds like a Roth IRA on steroids.” Well. I liked the idea so much that I am attempting to get the trademark for Roth on Roids.

The way to describe what Roth on Roids is as follows. A very simplistic way to describe it. It is like a bank account that you would put into a traditional bank, like a Bank of America only with a life insurance company, there is a death benefit. So again, it is like a bank account with an insurance company that has a death benefit. That’s the simplistic approach.

It is guaranteed you will never lose your money. It has a guaranteed minimum return and a maximum return. It grows tax free, the longer you let it grow, the greater it grows. Unlike a bank account where you have an interest that you are going to pay income taxes on. Life insurance companies don’t pay income taxes. So, when you buy their products, there are no taxes due. There are taxes on the premium, but the growth has no tax. For example, if you wanted the absolute safest way to keep your money someplace, you go to a bank and get a safe deposit box. You can’t buy that kind of safety, because you can’t afford the price of the safe deposit box, and that type of security.

So, when you buy a Roth on Roids, it has cash value insurance for the sole purpose to accumulate the cash, not the death benefit. The death benefit is incidental because it has to have a component of it. But using the example that you are 45 years old, you contribute $20,000 a year for 5 years, $100,000 goes in, and you let it grow tax free. At 65, you begin to withdraw the money on the value of the policy, the cash value. If you die in year one after contributing the $20,000, you have a death benefit. The death benefit will be somewhere around $400,000-$500,000 depending on your specific health. If you die in year one, your family gets 4 or 5 hundred thousand as a death benefit. If you survive for 20 more years, you would get the benefit of 20 years of tax-free growth. In this case, you would borrow $30,000 a year over a twenty year period, that’s over $600,000 assuming a 30% tax bracket; in other words, you would have to gross earn at least $1,000,000 to receive that benefit.

Roth on Roids has no limits as to how much you can contribute. On the other hand, there is a limitation for the traditional IRA and the Roth IRA. Contributions for IRAs are $5,000 a year and $6,000 if you are over the age of 50. That’s not a lot of money.

Pay Taxes Now (Roth IRA) or Pay Taxes Later (Traditional IRA)

admin — Mon, 01 Jun 2009 00:06:06 +0000

If you were to ask your accountant, “What are the Roth IRA rules; Which is better, pay the taxes now, or pay the taxes later?” he’s going to tell you later. Accelerate the expenses, reduce the income coming in. Well, he’s not going to be wrong, but we are in the lowest possible tax rates in history of the United States. Sometimes it makes better sense to pay the taxes now. The quickest way is to answer this question: Which is better, to pay the taxes when you buy the apple tree, like with a Roth IRA, or when you pick the fruit, like with a traditional IRA? If you pay the taxes when you buy the apple tree, it’s going to be less than when you pick the fruit because you can nurture that apple tree to produce significant amounts of fruits, and every time you pick the fruit, it’s going to be tax free just as with a Roth IRA. So, your accountant is not wrong by saying defer, but sometimes it is significantly better to pay the taxes when you do buy the apple tree because the production of those apples is going to be significantly more. Thus, you are going to be saving a tremendous amount of taxes.

If you ask your lawyer, his stock in trade is always going to be “it depends, possibly, maybe.” The fact of the matter is that either he doesn’t know, or if he knows, he’s not going to tell you what’s better 401k or Roth IRA, or maybe he doesn’t know that he doesn’t know that these types of programs are available or what the Roth IRA contribution limits are. The accountant is not going to take his time to come up with these types of suggestions to you, because for the price of preparing an income tax return, he’s not going to do it. Your lawyer works both sides of the fence, and unless he can figure a way to make a fee, he is very unlikely to give you the answer as well.

I’m Rocco Beatrice, 508-429-0011. Call me with your particular situation and I will be happy to discuss it with you. If I can’t solve your problem, maybe there is no solution.

Thank you.

Rocco Beatrice Helping Clients with IRA & Retirement Plan Investing

admin — Sun, 31 May 2009 23:34:56 +0000

Hi, I’m Rocco Beatrice. I am the managing director for Estate Street Partners. I have many advanced degrees. I have a lot of knowledge. I hold a Master’s in taxation, a Master’s in Business Administration; I am a Certified Public Accountant, a Certified Wealth Protection Planner, a Certified Asset Protection Planner, a Master Mortgage Broker. I hold all the credentials to value real estate and businesses.

For the past 38 years, I’ve been looking for products, advanced legal strategies, that you will be able to use to minimize your income taxes, be able to preserve your wealth, be able to protect your wealth against unscrupulous contingent fee lawyers and their predator clients. I look for ways to keep your assets away from bureaucrats who legislate continuously how to legally pick your pocket so that they’ll be able to stay in power for the next 30 years, how to put a chicken in every pot, how to buy votes. I can tell you the best way to look at Roth vs traditional IRA vs Roth on Roids.

I have worked with Fortune 100 companies. I have assisted them in creating and protecting their wealth. I am the state representative for the Asset Protection Society; I’m the state rep for Massachusetts, New Hampshire, and Rhode Island. I’m a facilitator. I will bring to the table, individuals that can solve your problems. I bring to the table a defense attorney, an asset protection attorney, a health care attorney, a conflict management attorney and other professional individuals that need to be at the table to solve your problem with their report.