Jameson Van Houten and Stonegate Financial Group Discuss How High Income Earners can Benefit from a Roth IRA.
Jameson Van Houten and Stonegate Financial Group present the advantages of a Roth IRA over a traditional IRA and discuss how individuals who earn high incomes can now take advantage of them.
SCOTTSDALE, Ariz., July 17, 2014 /PRNewswire-iReach/ -- In the past, individuals and couples who earn high incomes have not been allowed to invest in Roth Individual Retirement Arrangements (IRAs) and have only been allowed to pay into traditional IRAs. While this rule still exists, and high earners cannot pay directly into Roth IRAs, Jameson Van Houten shares that Congress, in 2010, changed the laws and now it is now possible for people to transfer a traditional IRA into Roth IRA. The result is that even high earners now have a means to access the benefits of the Roth IRA.
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A Roth IRA has several advantages over a typical IRA. The money invested in a Roth IRA does not get taxed as it grows, and can be taken out and used without being taxed as well. Additionally, there is no minimum distribution required during the life of the IRA holder, so money is not required to be distributed from the account until after the death of the holder. Finally, Roth IRAs have the advantage of being able to be passed down as inheritance without additional income tax obligations to the receivers. With all these benefits, Roth IRAs are much more desirable than other IRAs, and that is why Jameson Van Houten wants to share how individuals paying into traditional IRAs can receive these benefits.
Because of the change in the law, it is now possible for individuals to pay into the traditional IRA, as per usual, and then a few days later, convert the funds in the traditional IRA into a Roth IRA. If the individual does not already have money in a traditional IRA, they can do this with little to no extra taxes because no interest has been made on the traditional IRA. However, if the individual wanting to convert the traditional IRA into a Roth IRA has an existing traditional IRA, especially one that is collecting interest, they will have to pay immediate taxes on all their assets when they convert a portion into the Roth IRA. This is something that should be taken into account when converting.
Jameson Van Houten and Stonegate Financial Group do point out that taking this approach to enrolling in a Roth IRA is not a possibility for everyone. For certain people, it can be costly or will not give them the benefits they seek depending on a number of different factors. Seeking help from a financial adviser will allow individuals to see if they are in a position to take advantage of these changes. For more information on investing and financial planning visit http://www.stonegatefg.com.
Media Contact: Jameson Van Houten, Stonegate Financial Group, (602) 953-8451, email@example.com
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SOURCE Jameson Van Houten and Stonegate Financial Group
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|Date:||Jul 17, 2014|
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