Mitt Romney Could Have Enjoyed Tax-Free Gains Had He Elected To Use a Self-Directed Roth IRA To Make His IRA Investments

Self-Directed Roth IRAAs much as he has, Mitt Romney could have had substantially more – tax-free! With a Self-Directed Roth IRA his investment gains would not be taxable at distribution. At the time of his investing, however, Mr. Romney didn’t have this option. Until 2010, his income bracket prevented him from enjoying the tax-free benefits of a Self-Directed Roth IRA.

The Advancement Group, LLC, a leading facilitator of Self-Directed IRA LLC rollovers and investing, was established by Ruben Ledesma, Jr. in 1991 to assist in the facilitation of secured investment strategies that ensure a higher return on investment for its clients. Since that time, millions have been successfully invested, yielding consistently high returns, even through the down-turned economy. The Advancement Group has helped its clients use their retirement funds for private, tax-free or tax-deferred investments.

For Mr. Romney’s estimated $20 million to $100 million in Self-Directed IRAs, a large portion of his wealth, there will be taxes due when mandatory distributions begin at 70.5 years of age. Given that income tax rates are expected to increase in the near future, using pre-tax IRA or SEP IRAs as he did will likely cost him a hefty sum in taxes. Tax-law changes that have taken effect mean that long-term capital gains in regular accounts are now taxed at 15%. IRA gains, however, are taxed at ordinary-income rates at the time of distribution, which given Mr. Romney’s tax-bracket, will be 35% by today’s rates, and may be even higher by then.

The good news is that after 2010, the IRS made changes to allow individuals, regardless of their income level, to convert their pre-tax IRA to an after-tax Roth IRA, without penalty.

Regardless of the gains realized through strategic investing of one’s Self-Directed Roth IRA, no taxes will be due when distributions are taken during retirement (as long as the distributions meet certain requirements), allowing more income to accrue for later years. All taxes are prepaid on the contributions made to a Roth IRA, including to a Self-Directed Roth IRA.

The Taxpayer Relief Act of 1997 introduced the Roth IRA as an option to the traditional IRA. The main advantage of a Roth IRA is that when one qualifies to contribute, all gains realized through successful investing remain tax-free.

Today, the Self-Directed Roth IRA is available to anyone qualified to make contributions and interested in earning tax-free returns from real estate, medical innovations, oil and gas, and many other alternative investment choices.

Contact The Advancement Group today to move your retirement account to a Self-Directed IRA. Whether you decide to use a Self-Directed IRA with tax-deferred benefits, or a Self-Directed Roth IRA with tax-free gains, The Advancement Group can help you move your retirement account and find, assess and deploy high-yield, fixed return investments. Learn more at 214-432-2724

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