When Should Investors Use a Self-Directed Traditional IRA over a Roth IRA?
ASHEVILLE, NC / ACCESSWIRE / July 17, 2020 / When should investors choose a Self-Directed Traditional IRA over a Roth IRA? According to a recent post at American IRA, a Self-Directed IRA administration firm based in North Carolina, there’s no definitive answer. In fact, the article says that it’s important for investors first to understand why other investors flock to Roth IRAs for their retirement-and why a traditional IRA might make sense in some circumstances.
To illustrate, the post went into detail about how differently the two accounts might be taxed. For example, a Traditional IRA includes deductible contributions-in other words, pretax money that can then sit in the account while the money builds up. The investor would then have to pay on the distributions from this account upon retirement. With a Roth IRA, the investor pays taxes upfront so that the money from the retirement account-provided all of the other requirements have been met-are then tax-free.
For that reason, many investors point to a Roth IRA as a great way to save for retirement. One reason that investors have to think about this, American IRA argues, is that they calculate what kind of money they pay on taxes in the immediate term and what kind of money they can expect to pay in taxes when they retire. For many people, as they age, they also earn more money over time. That can make it a better prospect to put aside taxable money in a retirement account as soon as possible-essentially front-loading the taxes.
The Traditional IRA, the post notes, works the opposite way, with the opposite advantage. It can create immediate tax savings for anyone who wants to put aside money for retirement right away.
American IRA stresses that in its role as a Self-Directed IRA administration firm, it does not offer specific investment advice. Rather, it informs investors about the differences between accounts like a Self-Directed Traditional IRA and a Self-Directed Roth IRA. For more information, visit the post at www.AmericanIRA.com or call American IRA at 866-7500-IRA.
About:
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 and Atlanta, GA.”
SOURCE: American IRA, LLC
View source version on accesswire.com:
https://www.accesswire.com/595954/When-Should-Investors-Use-a-Self-Directed-Traditional-IRA-over-a-Roth-IRA
