Look Both Ways Before You Cross The Road To A Roth IRA

By Admin Prepare

June 8, 2021

Millions of people are moving money into tax-free Roth IRAs in anticipation of higher taxes in the future. Should you do this as well? Well, just as you have always been taught to look both ways before crossing a road, you need to evaluate all factors before moving money to a Roth IRA.

The idiom ‘the greatest thing since sliced bread’ means that something is the best and most useful innovation or development invented for a long time. In the financial and retirement planning-world, many people feel the Roth IRA is meeting this definition. Why is that? Well, look at its characteristics: tax-free growth, tax-free withdrawals and it passes on to heirs tax free. That sounds pretty good, especially to people who believe taxes will be higher in the future. With the massive amount of national debt continuing to increase at a rapid pace, along with all the stimulus package money that has recently been introduced, and with a new presidential administration telling us that all types of different taxes are going to be raised or introduced in the near future, in all likelihood tax rates will have to be increased.

So should you be moving money from your taxable bucket to a tax-free Roth IRA bucket as many people everywhere are doing to prepare and protect themselves from higher taxes in the future? Well, just as you have always been taught to look both ways before crossing the road, you have to consider all factors before crossing your money over from your pre-tax IRA bucket to a tax-free Roth bucket.

To learn about retirement planning as well as the most proper and effective ways to use this tool to really enhance your retirement plan and become as tax efficient as possible, visit the Prepare Institute website (www.theprepareinstitute.org) and find a retirement course or class near you.

Content is for educational and informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article