Inherited Roth Iras – The Gift That Keeps On Giving

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Topics: IRA/Roth
using options with IRA for tax free profits

    The benefits of a Roth IRA are legendary, but the benefits of an inherited Roth IRA are even better.  One of the best legacies you can leave to your children or grandchildren is an inherited Roth IRA.  By leaving a Roth IRA to your beneficiaries, you leave them with the ability to create a stream of tax and penalty free income for their lifetime, regardless of their age when they inherit the account.  This is particularly powerful if the beneficiary of the Roth IRA is a young child.

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Use Your Roth 401(k) Plan to Retire Rich Using OPM and NEVER PAY TAXES!

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Topics: IRA/Roth


  The Roth 401(k) is here – and so is a way to retire rich using OPM (Other People’s Money) without paying taxes, ever! Those of you who read this publication regularly know that I often write about the tax that retirement plans, including IRA’s and 401(k)’s, must pay on Unrelated Business Income (UBI) and Unrelated Debt Financed Income (UDFI). This tax is paid by these plans when they own a business in the plan (UBI) or own debt-financed property (UDFI), either directly or indirectly through a non-taxed entity such as an LLC or a partnership. What most people don’t know is that 401(k) plans enjoy an exemption from the tax on UDFI for income from debt-financed real property in certain circumstances. Combining this exemption with the powerful new Roth 401(k) is one of the most exciting opportunities to build your retirement wealth since the Roth IRA came along in 1998.

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How to Get $2000 FREE From the US Government

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Topics: IRA/Roth

 
            How would you like to increase your retirement savings and receive a tax credit of up to 50% of your contribution from the United States government FREE? Are you at least 18 years old, not a full-time student, and not claimed as a dependent on another person’s tax return? If so, and you meet the income requirements listed below, you are entitled to a tax credit of up to 50% of your contribution to almost any type of retirement plan, including a Roth IRA. If you then take your refund from the government and put it back into your IRA, your retirement savings will increase by as much as 50%! And all you have to do is ask for it!

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Buying Debt Financed Real Estate In An IRA

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Topics: IRA/Roth

          
   Good news! You can buy real estate in your traditional, Roth, SEP, or SIMPLE IRA, your 401(k), your Coverdell Education Savings Account for the kids, and even in your Health Savings Account. Even better, your IRA can borrow the money for the purchase or even take over a property subject to existing financing. What could be better than building your retirement wealth using OPM (Other People’s Money)? However, there are some restrictions which you must be aware of when using your IRA to purchase debt financed real estate. Below I answer a series of frequently asked questions regarding the purchase of debt financed real estate in an IRA.
 

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To Pay or Not to Pay — UBIT

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Topics: IRA/Roth


  Most people understand that an IRA is normally not a taxable trust and its income is not taxed until the income is distributed (or not at all, if it is a qualifying distribution from a Roth IRA). However, there are 2 circumstances when an IRA may owe tax on its income. First, if the IRA is engaged in an unrelated trade or business, either directly or indirectly through a non-taxable entity such as an LLC or a limited partnership, the IRA will owe tax on its share of Unrelated Business Income (UBI). Second, if the IRA owns, either directly or indirectly, property subject to debt, it will owe tax only on the portion of its income derived from the debt, which is sometimes referred to as Unrelated Debt Financed Income (UDFI). I will refer to either tax as Unrelated Business Income Tax (UBIT) in this article.

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Use Your Roth 401K Plan to Retire Rich

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Topics: IRA/Roth


 
            The Roth 401(k) is here – and so is a way to retire rich using OPM (Other People’s Money) without paying taxes, ever! Those of you who read this publication regularly know that I often write about the tax that retirement plans, including IRA’s and 401(k)’s, must pay on Unrelated Business Income (UBI) and Unrelated Debt Financed Income (UDFI). This tax is paid by these plans when they own a business in the plan (UBI) or own debt-financed property (UDFI), either directly or indirectly through a non-taxed entity such as an LLC or a partnership. What most people don’t know is that 401(k) plans enjoy an exemption from the tax on UDFI for income from debt-financed real property in certain circumstances. Combining this exemption with the powerful new Roth 401(k) is one of the most exciting opportunities to build your retirement wealth since the Roth IRA came along in 1998.

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How Do I Invest Thee? Let Me Count the Ways!

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Topics: IRA/Roth


  Many people find it very easy to see the benefits of self-directing their Roth and Traditional IRAs, SEP IRAs, SIMPLE IRAs, Individual 401(k)s, Coverdell Education Savings Accounts (ESAs) and Health Savings Accounts (HSAs) into something other than the same old boring stocks, bonds, annuities and mutual funds. The central idea of a self-directed IRA is that it gives you total control of your retirement assets. With a self-directed account you can invest your IRA funds in whatever you know best.

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