How to Use Roth and IRA Accounts To Provide a Secure Retirement, 2023 Edition
How to Use Roth and IRA Accounts To Provide a Secure Retirement, 2023 Edition
Imagine having an income tax-free retirement income!
It's possible with a Roth IRA or Roth 401(k) account!
In this compact explanation updated for the Proposed IRS Regulations for the SECURE Act and for SECURE 2.0 Act (enacted December 29, 2022,) Michael Gray, CPA gives the highlights of what you need to know to build a big, tax-deferred or tax-free retirement account and get the maximum benefits from it.
How do the advantages and disadvantages of a Roth account compare to those of an IRA account?
How can you use a rollover from a 401(k) or other employee retirement account to create a big Roth or IRA account?
Many people have become disenchanted with the stock market. How can you use a self-directed Roth or IRA account to make alternative investments, such as in real estate or private mortgages?
What are the prohibited transactions that can result in disqualification (treated as instant distribution) of your Roth or IRA account?
When can a Roth or IRA be required to pay income taxes? Should you go ahead with an investment that generates income taxes for the Roth or IRA anyway?
And much more!
It is 101 pages of hard-hitting information. This is a "plain talk" explanation that doesn't require a lot of tax knowledge, but will help you avoid unexpected tax traps.
"Finally a book on IRAs anyone can understand!"
- Ron LeGrand
Real Estate teacher and Millionaire maker
www.ronlegrand.com
"The world of retirement accounts can be complex and mysterious to the average investor or retirement saver. This work by Michael Gray simplifies much of the jargon and complex rules. As such, the typical consumer can learn and take advantage of the positive aspects of savings vehicles, in particular, the Roth IRA that is probably the best U.S. savings vehicle ever created."
- Tom W. Anderson
President, Retirement Industry Trust Association (RITA) and Founder and Vice Chairman
PENSCO Trust Company
www.PENSCO.com
Table of Contents
Copyright Notices page 2
For more information page 3
Gift Certificate page 4
Praise for How to use Roth and IRA accounts to provide a secure retirement page 5
1 Introduction page 9
2 Why a Roth or IRA is a key element in a retirement plan page 11
3 Roth or IRA? page 13
4 Single-person 401(k) and SEP alternatives for the Self-Employed page 19
5 What kinds of investments can you make with a Roth or IRA? page 23
6 Look before you leap! Due diligence page 25
7 What kinds of transactions must you avoid with your Roth or IRA? (Prohibited transactions.) page 31
8 Making alternative investments in a Roth or IRA using a self-directed account page 35
9 A case study page 38
10 When Roths and IRAs owe income taxes - The Unrelated Business Income Tax page 40
11 Where to get help with your investments page 42
12 Creating a bigger account - rollovers from qualified plans (401(k)s) page 43
13 Converting a tax deferred account to a tax-free account - at a price (Roth conversions) page 45
14 What distributions can you take from a Roth or IRA before age 59 1/2? page 48
15 Distributions permitted from a Roth or IRA starting age 59 1/2 and before the required beginning date page 53
16 Required annual distributions during the participant's lifetime after the required beginning date page 54
17 Valuation and retirement accounts page 57
18 Estate Planning for IRAs and Roths page 59
19 Handling an IRA or Roth account after a death page 70
20 Divorce page 77
21 Additional references page 79
22 About the Authors page 81
Appendix A Retirement Plan Calendar checklist for after a death page 83
Appendix B IRS Actuarial Tables for Distributions page 87