ASHEVILLE, NC / ACCESSWIRE / November 4, 2019 / A Self-Directed Roth IRA can be a powerful way for investors to build wealth. As many investors are aware, a Roth IRA allows investors to pay taxes on their contributions upfront, which in turn allows for long-term, tax-free growth that can be withdrawn tax-free at retirement age. But a post at American IRA-a Self-Directed IRA administration firm-recently highlighted that there are unique eligibility rules to a Self-Directed Roth IRA that investors will want to pay attention to.
The post went on to explain these rules. For example, one of the key rules in a Self-Directed Roth IRA is that the holder has to have an earned income. In this case, earned income is generally used to refer to income from a business, or employment income. Income that tends to be more passive may still be income, but for the purposes of qualifying for a Roth IRA, might be known as 'unearned' income.
Before setting a retirement plan in place, the post notes, it's important for investors to make sure they understand these eligibility rules. It's especially important for anyone considering whether to open a Traditional IRA or a Roth IRA. As the post notes, the contribution limits for a Roth IRA are not independent of other accounts. Holding multiple Roth IRAs, for example, would not expand the amount of money that an investor could put within a Roth IRA.
'With this post, we really wanted to point out how unique Roth IRAs can be,' said Jim Hitt. 'There's a reason they are so popular with investors. But they are not popular with every investor, in particular because of these rules of eligibility. That's why it's so important for investors to know all about Self-Directed Roth IRA eligibility before they start making plans they cannot follow up with.'
For more information on eligibility within a Self-Directed Roth IRA, visit American IRA at www.AmericanIRA.com. Interested parties may also contact the Self-Directed IRA administration firm at 866-7500-IRA.
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
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