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Tax Deduction Consulting: Roth IRA Deductions Brigham City UT

When the owner of the account reaches the age of 59.5 years, and as long as the account is seasoned, which means it has been open for at least five years, the earnings become qualified and may be withdrawn without penalty.

Mr. A. Wayne Margetts (RFC®), LUTCF
(801) 532-1871
175 S Main St, Ste 1050
Salt Lake City, UT
Company
LPL
Qualifications
Education: BSc (Math)MBA
Years of Experience: 16
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Gardner Tax & Accounting
(435) 656-8291
32 E 100 S, STE 202
St. George, UT
 
H&R Block
(801) 733-0847
3438 BENGAL BLVD
SALT LAKE CITY, UT

Data Provided by:
H&R Block
(435) 725-3335
855 E 200 N STE 112-3
ROOSEVELT, UT

Data Provided by:
H&R Block
(801) 495-4172
9151 S QUARRY BLVD
SANDY, UT

Data Provided by:
Mr. Gregory W. Williams (RFC®), CFP, CHFC, CLU, LUTCF, MSFS
(801) 453-2271
6340 South 3000 East, Suite 500
Salt Lake City, UT
Company
Exit Strategy Specialists, LLC
Qualifications
Years of Experience: 26
Membership
IARFC, MDRT, FPA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Business Coach, Charitable Planning, Education Plan, Asset Protection, BuySell, Compensation Plans

Data Provided by:
H&R Block
(435) 884-3076
124 W MAIN ST
GRANTSVILLE, UT

Data Provided by:
H&R Block
(801) 223-9766
1549 N STATE ST STE 102
OREM, UT

Data Provided by:
Robert Blake Accounting and Tax
(801) 763-8295
9626 Dorchester Drive
Cedar Hills, UT
 
Liberty Tax Service
(866) 871-1040
438 E 12300 S
Draper, UT

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Tax Deduction Consulting: Roth IRA Deductions

Roth IRA Tax Deduction

This is another contradiction in terms. There is no Roth IRA tax deduction, but this does not mean that the Roth IRA does not have tax implications.

Roth IRA Tax Deduction

A Roth IRA is a type of Individual Retirement Account. They were established in 1998 and named after the Senator who was the main supporter of the legislation that established it. The difference between a Roth IRA and a traditional IRA is that the contributions to the account are made with funds that have already been taxed. This means that the contribution may not be taken as a tax deduction. It is too late; the tax has already been paid.

However, this is the idea. Since the contributions have already been taxed, they are not taxed when they are withdrawn. The owner of the Roth IRA has the option of withdrawing all of the funds up to the total of his contributions at any time, for any reason, without incurring any additional tax liability. There also is no penalty. The operator of the Roth IRA has more options on the kinds of investments that can be made, and the potential for earnings within the account is high.

When the owner of the account reaches the age of 59.5 years, and as long as the account is seasoned, which means it has been open for at least five years, the earnings become qualified and may be withdrawn without penalty. One of the conditions that would make a Roth IRA attractive would be when the taxpayer anticipates being in a much higher tax bracket after retirement. This is not as strange as it might sound. Assuming that income continues to rise during your lifetime, and investments are made that pay off large returns after being held for years, the taxpayer might easily have more wealth and income after retirement.

Since the tax has been paid before the contributions have been made, and most likely at the lower rate, the tax payer ultimately pays less tax in the long run. If he was to pay the taxes after retirement, he would have to pay the...

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