How to Pay Almost ZERO in Taxes on All Your New Income
Welcome to the first day of your new life… one in which your retirement savings are growing and growing, with little extra effort on your part.
Yes, you’re ready to grow your wealth…
But you want to put your savings to work.
After all, you want to keep your income growing consistently…
Fees and Taxes Are Killing Your Savings
Fees, taxes and commissions quickly add up — cutting into your profits in a major way.
Look, the tax man and the IRS will come sniffing around sooner or later, and yes, they’re owed a cut, but you don’t have to give away all your profits!
U.S. tax laws are dramatically complex, and figuring out exactly how to retain the majority of your gains without paying a big slice to the Internal Revenue Service (IRS) can be confusing.
But it doesn’t have to be…
Stay with me now because I’m going to cover just exactly how you can pay almost zero in taxes on your income.
It’s My Money!
Uncle Sam wants a piece of your stock market profits, including dividends, incomes and capital gains…
But remember, this is YOUR money. In this case, you control just how much hard-earned income can be taxed.
Enter: Roth IRA (individual retirement account).
A little different from a traditional IRA — designed to build investor retirement savings — a Roth IRA encourages savings by giving you unique tax benefits.
Meaning, the money you deposit into your Roth IRA account, if you’re over the age of 50, essentially grows tax free and can be withdrawn tax free.
And while money withdrawn from a traditional IRA would be subject to tax, you won’t pay a thing on the money grown within your Roth IRA account.
Understanding the different tools at your disposal is key to preserving your hard-earned income…
That’s what makes a Roth IRA so unique.
The money you put aside — up to $6,000 per year or $7,000 for smart investors over 50 for 2019 — can grow consistently worry and tax free and will set you up perfectly for retirement.
The Fine Print
In the U.S., someone turning 65 years old today is expected to live into their 80s or even 90s. That means you will need 20-plus years of retirement income.
Sadly, in many cases, Social Security is not enough, which is why you need to start saving ASAP.
The kicker with a Roth IRA is that only people who actively work and collect income are eligible to open and contribute to an account.
At the same time, you can double your maximum deposit of $7,000 to $14,000 through an additional contribution from a spouse as long as you jointly file your taxes. This is an option many consider.
There is, however, a second contribution limit to take into account — the income test.
If you are a single filer with adjusted gross income (AGI) above $122,000 or file jointly with an AGI of more than $193,000 in 2019, then your allowed Roth contributions will be reduced.
Furthermore, if your AGI is above $137,000 or $203,000 (single or joint, respectively), then you cannot contribute to a Roth account.
Roth IRAs, in contrast to traditional IRAs, are not subject to required minimum distributions starting at age 70½, so they are very attractive for people that want to leave money behind to their heirs.
Bottom Line: The tax savings for Roth IRAs can be gigantic for qualified individuals, and using this unique tool can be a crucial factor in reaching your financial retirement goals…
Here’s to growing your wealth,
Chief Income Expert