Ever wonder if there is a Roth IRA retirement plan for the wealthy & rich? What is the most important fact that you need to know about a Roth IRA if you are making an Adjusted Gross Income (AGI) of over $101,000 a year (if single or $169,000/year filing jointly)? You do not even qualify for a Roth IRA! "Why is that?" you say. Well, the answer to that is debatable. My take is that the government has created a truly powerful wealth creation tool in the Roth IRA, but don't really want to share it with the well-to-do. They figure, if you make under $100,000 per year there is a good chance you will be a burden, financial drain, on the government in your twilight years. So to help avoid this future financial burden they allow for a small amount of your wages (Roth IRA contribution limits are $5,000 per year or 6,000 if you are over 50) to be invested tax deferred and income tax free. So, naturally I guess your next question would be, "Why are you telling me about this great investment vehicle – that I can't participate in?" Drum roll please. The answer to this question can be found at, www.BestIraRescue.com, a new alternative retirement strategy web site for the affluent.
After looking over what the site calls a Roth IRA on Roids (or Roth on Roids™ for short) it becomes apparent that almost anyone can use this newly trademarked alternative retirement strategy, regardless of income, to gain all the advantages of a traditional Roth IRA and more. "More?" you say. Yes, more! Not only can you use the Roth IRA on Roids for tax-deferred growth and tax-free income, but with this wealth building tool you will also have an immediate death benefit and if that isn't enough to get you excited – your principle is guaranteed. That's right – you cannot lose money that you contribute to this plan. No need to complain that, "My retirement savings is down 50 percent. What do I do now?" Some other benefits of the Roth IRA on Roids that surpass the Roth IRA rules include:
- No Roth IRA contribution limits. That means you can contribute as much money as you see fit with this plan without having to worry about IRS's measly $5,000 limit (sorry don't forget about the liberal "catch-up provision" of an extra $1,000 if you are over 50 – oh joy!).
- No IRA withdrawals rules or forced withdrawals. You are not required to make withdrawals at 70 1/2 as you are with a traditional IRA. In fact, you can decide to start taking money out at any age you wish or not at all.
- No IRA Estate Tax for the death benefit. The death benefit of the Roth IRA on Roids can be passed onto the beneficiary income and estate TAX FREE!
So there you have it, just about anyone can have the tax benefits of a Roth IRA with a few extra added benefits. To keep fair and balanced on this subject, one down side to the Roth IRA on Roids is that the contributions are made with after-tax dollars, as opposed to some other retirement plans such as Traditional IRA. I know another dream deferred, but hey, we have to pay for all these bailouts somehow! Okay sorry, that was my ghastly attempt at some humor, but I think you have to remain good-humored when talking about death benefits, IRA retirement planning, and the IRS.
I have simplified the IRS tax code and IRA retirement planning immensely in this article for the sake of an easy and enjoyable read. But the above remains a good starting point for those looking to reap the rewards of a ROTH IRA without actually having to qualify for one (the tricky part).