A Big Tax Loophole Just Got Bigger

Believe it or not, there are ways to convert taxable income
into non-taxable income, without any fear of an IRS audit.

Here's one of my favorites. It's been part of our beloved
tax code for over 30 years, yet many still don't take
advantage of it.

What am I talking about?

The IRA -- Individual Retirement Account.

Now, before you say, "Oh, I know all about that one; what's
so great about an IRA?", give me 10 minutes to explain 3 new
benefits to the IRA rules that you may not realize.

BENEFIT #1: How To Avoid Tax Rather Than Postpone Tax

First, did you know that there are now 2 kinds of IRA's
available?

The so-called "Traditional IRA" is the one that first came
out way back in the 1970's.

But there's a newer incarnation of the IRA that's only a few
years old -- it's called the "Roth IRA".

What's the difference between a Traditional IRA and a Roth
IRA? There's a HUGE difference!

"Traditional" IRA contributions are tax-deductible, and the
growth of those contributions is also "tax-sheltered" while
the funds remain in the account.

But eventually all tax-deductible "Traditional" IRA
contributions, as well as the growth of those contributions,
will be subject to income tax when the money is withdrawn
from the account.

In other words, Traditional IRA's offer the opportunity to
POSTPONE taxes. Traditional IRA's enable you to save taxes
--- but these tax savings are only TEMPORARY!

This is the big difference between Traditional IRA's and
Roth IRA's: Traditional IRA's allow you to temporarily
POSTPONE taxes. The Roth IRA offers the opportunity to
permanently AVOID taxes.

With a Roth IRA, you don't take a deduction for your
contributions; instead, you make a contribution with "after-
tax" dollars.

But whatever you put in not only grows tax-free, but can
also be withdrawn tax-free.

Here's an example to illustrate:

If you invest $2,000 per year for 20 years into a Roth IRA,
you will have invested a total of $40,000. Now if that Roth
IRA earns an average of 10% per year, that $40,000 will
grow into $126,005.

Now comes the fun part: Assuming the IRA has existed for at
least 5 years and you are at least 59