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Tax Deduction Consulting: Roth IRA Deductions Wasilla AK

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the account is seasoned, which means it has been open for at least five years, the earnings become qualified and may be withdrawn without penalty.

Liberty Tax Service
(866) 871-1040
11409 Business Blvd # 1201
Eagle River, AK

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WRConkey's Accounting Service
(907) 717-5233
200 W 34th # 852
Anchorage, AK
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Fixed

H&R Block
(907) 283-4889
11312 KENAI SPUR HWY
KENAI, AK

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H&R Block
(907) 222-2978
5800 WESTOVER
ELMENDORF AFB, AK

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Liberty Tax Service
(866) 871-1040
2207 E Tudor Rd # 35
Anchorage, AK

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Mr. Micah Vincent Shilanski (RFC®), CFP, CSA
(907) 278-1351
431 W. 7th Avenue Suite 100
Anchorage, AK
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Shilanski & Associates, Inc.
Qualifications
Years of Experience: 9
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CommOptions, Collectable Coins , Precious Metals, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Education Plan, Healthcare Accounts, BuySell

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H&R Block
(907) 646-9864
3101 PENLAND PARK STE H-2
ANCHORAGE, AK

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H&R Block
(907) 789-9898
3017 CLINTON drSTE 100
JUNEAU, AK

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Liberty Tax Service
(866) 871-1040
11409 Business Blvd # 1201
Eagle River, AK

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H&R Block Inside Eastview Center
(907) 337-1040
5520 LAKE OTIS PKWY STE 102
ANCHORAGE, AK

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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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