Thanks to a legal loophole that hasn’t been closed YET, any American, no matter how much you earn may be able to fund a Roth IRA for 2013 and 2014. Roth IRAs grow tax free for retirement, which could save you tens of thousands of dollars or more in taxes! If your modified Adjusted Gross Income (MAGI) was more than $127,000 as a single taxpayer or $188,000 as a married taxpayer then you cannot fund a Roth IRA – directly.
Under the current law you can still fund a Traditional IRA for 2013 until April 15, 2014. Once you have created the Traditional IRA (which grows tax deferred, not tax free) then you can immediately convert it to a Roth IRA by paying the taxes on the earnings. Of course if you convert it immediately then there is no time to earn any money so you pay virtually no taxes and get that money growing tax free! This strategy works very well for many people but there are some circumstances that can complicate the process.
If you want to learn more and have money growing tax FREE call the unbiased Certified Financial Planners® on the Financial Helpline at 877-258-2129 to find out how this works, if it may work for you and what questions to ask your own advisor. Be sure to act now as you must take action by April 15th to make a 2013 contribution!