CHARLOTTE, NC / ACCESSWIRE / February 12, 2021 / The Roth IRA, thanks to its tax benefits, is one of the most popular retirement accounts in the United States. For many investors, it is an independent way to put money aside for retirement. And it is easy to see why: with a Roth IRA, investors can put after-tax money and have confidence that the money will grow tax-free. This includes Self-Directed IRA investors who want to use nontraditional assets within a Roth IRA.
But a recent post at American IRA, a Self-Directed IRA administration firm, posed an interesting question. Are there circumstances in which it is better for an investor to use a Self-Directed Traditional IRA, in which investors use pre-tax money (tax-deductible contributions) to fund the account? Because the Traditional IRA is an older form of retirement invest, many investors view it as an outdated account. But does that hold up?
According to the post at American IRA, it is important to consider how each account works. The post detailed the various inner workings of both accounts, including the tax structure that makes so many investors think about how they put money away for retirement. This is central to the question of how investors will want to approach which account to choose. And it is a topic thoroughly explored at the American IRA website.
“We wanted to use this article to help introduce people to both accounts,” said Jim Hitt, CEO of American IRA. “Many people are familiar with the IRA. But when you add the dimension of self-direction, it means that there may be some other things to consider. And we used this post to dig into some of those details.”
Those details included the specifics of using contributions to a Self-Directed Traditional IRA. Said the post: “if you’re contributing to a Traditional IRA, you’ll have to look at how much you’re able to deduct from a given year’s taxes.” Details like these can be easy for beginning investors to overlook, but they become very important over the course of an investment lifetime.
“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
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