ATLANTA, GA / ACCESSWIRE / April 11, 2020 / Investors who have trouble deciding between a Traditional IRA or a Roth IRA have a new resource to consult. American IRA-a Self-Directed IRA administration firm based in North Carolina-recently released a blog post tackling the question of when a Traditional IRA or a Roth IRA works best for investors.
As a Self-Directed IRA administration firm, American IRA does not offer specific investment advice. However, the post did detail how the Traditional and Roth IRA arrangements differ from each other. Depending on an individual investor's retirement plans and expectations for retirement income, one type of account might make more sense over the other.
The post was quick to point out that there are many benefits to using a Self-Directed Roth IRA. For example, a Roth IRA uses taxable income for its contributions, which means that the taxes on this money are paid by the investor up front. The result is that the Roth IRA doesn't require taxes on withdrawals after retirement age. The Roth IRA also serves as a sort of emergency fund, as investors can withdraw their own contributions (but not their growth) before retirement age without facing additional penalties-after all, this money has already been taxed.
The post also noted that as the Roth IRA uses taxable money for contributions, there are now RMDs-required minimum distributions-with that account. Investors who plan on working for a long time often find this a chief benefit of the Roth IRA.
"The Roth IRA is a powerful investment tool, and people need to know why that's so," said Jim Hitt, CEO of American IRA. "But the Traditional IRA also has its role. That's why we released a post that talked about the benefits of each."
With a Self-Directed Traditional or Roth IRA, investors also have additional access to making a wide range of investment types, from real estate to precious metals. That means the possibility for a more diversified portfolio while using a Traditional or Roth IRA for its full benefits.
For more information on Roth IRAs and Traditional IRAs, visit American IRA at www.AmericanIRA.com. Interested parties may also contact American IRA at 866-7500-IRA.
"About:
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