Introduction

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A Roth IRA may be opened by any individual who has earned income and wants to save for retirement with tax advantages.

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With a Roth IRA, cash is contributed "post-tax," which means the contribution is made with taxable earnings for that year.

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Cash contributions can then buy assets (stocks, real estate, gold, etc.), and earnings on those assets are tax-deferred.

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A Roth IRA holder may withdraw the principal amounts (i.e. your contributions) at any time without penalty or tax liability.

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After 59.5 years of age you can take distribution(s) without penalty and without taxes, as long as the account has been open for at least five years.

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Passed into law in 1997, the Roth IRA is a powerful tool for your overall financial strategy.

Self-Directed IRA Educational Videos

Foundations of Self-Directed IRAs

Start with the basics and explore this retirement account introduction. Learn how retirement plans can participate in a variety of investments, including real estate, precious metals, and more. This presentation is geared toward beginners and those who are just getting started with retirement plans.
 
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What are the Benefits of a Roth IRA?

  • Qualified withdrawals (distributions) are tax-free because you already paid taxes on the contributions.
  • All earnings derived from your contributions can be distributed without incurring any tax.
  • You are able to invest for retirement in an account that lets your investments compound each year without being hindered by taxes.
  • If you anticipate your tax rate at retirement to be the same or higher than your current tax rate , your total tax burden may be less.
  • You can make contributions even if you are over 70.5.
  • It can be used to invest in a wide variety of assets including real estate, precious metals, public and private stock, notes, and more.
  • Distributions up to the amount of your total contributions may be taken at any time without tax or penalties.
  • No Required Minimum Distributions (RMD).
  • You may own multiple IRAs (as many as you wish). 
  • Assets may be moved between Roth IRAs, without a tax consequence, at your discretion.
  • Roth IRAs can be a part of a generational wealth plan.

Roth IRA Eligibility and Other Rules

You can contribute to a self-directed Roth IRA at any age if you have taxable income and your income is below IRS limits for Roth IRAs. See the Roth Contribution page for more information.

You may convert any amount of funds from a Traditional IRA to a Roth IRA. This is a taxable event. The amount converted in a given tax year is added to your ordinary income for that year. See the Traditional to Roth Conversion page for more information.

The five year Roth rule refers to a five year period that restricts tax-free distributions on the earnings/gains in a Roth IRA, and restricts distributions of converted funds from a Roth IRA. If a Roth IRA achieves gains in addition to the contribution amount(s), distributions of those gains before the five year waiting period will be taxable. Similarly, funds that are converted from a "pre-tax" retirement plan to a Roth IRA must wait five years in order to be distributed tax-free. The five year period begins when an IRA holder opens a Roth IRA and begins making contributions, OR when a new Roth conversion is performed.

It's Easy to Invest for Retirement with a Roth IRA

 Open a Roth IRA account with New Direction IRA

 Put money in that IRA by rolling money over from an old 401(k), transferring from another IRA, and/or making a contribution

 Buy real estate, precious metals, private equity, loans, and more!

Learn more about Roth IRA Contributions and Roth IRA Distributions.

For more detailed information, feel free to Contact Us.

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