What are the Advantages of Converting a Traditional IRA to a Self Directed Roth IRA LLC?

The main advantage of a Roth IRA over a Traditional IRA is that if you qualify to make contributions, all distributions from the IRA are tax-free. Furthermore, unlike traditional IRAs, you may contribute to a Roth IRA for as long as you continue to have earned income (for a traditional IRA - you can't make any contributions after you reach age 701/2).

Self Directed Traditional IRA	Self Directed Roth IRA
Tax deductible contributions	Contributions are not tax deductible – contributions made to a Roth IRA are from after tax dollars
Distributions may be taken by age 59 1/2 and are mandatory by 70 1/2.	No Mandatory Distribution Age – with a Roth IRA you are not required to ever take distributions
Taxes are paid on amount of distributions (10% excise tax may apply if withdrawn prior to age 591/2)	No taxes on distributions if rules and regulations are followed
Available to everyone; no income restrictions	Single filers, Head of Household or Married Filing Separately (and you did not live with your spouse during the year) with modified adjusted gross income up to $105,000 can make a full contribution. Contributions are phased-out starting at $105,000 and you cannot make a contribution if your adjusted gross income is in excess of $120,000. Joint filers with modified adjusted gross income up to $166,000 ($167,000 in 2011) can make a full contribution. Once again, this contribution is phased-out starting at $166,000 ($167,000 in 2011) and you cannot make a contribution if your adjusted gross income is in excess of $176,000 or $177,000 in 2011.
Funds can be used to purchase a variety of investments (stocks, real estate, precious metals, notes, etc.)	Funds can be used to purchase a variety of investments (stocks, real estate, precious metals, notes, etc.)
IRA investments grow tax-free until distribution (tax deferral)	All earnings and principal are 100% tax free if rules and regulations are followed – No tax on distributions so maximum tax-deferral
Income/gains from IRA investments are tax-free	Income/gains from IRA investments are tax-free
Purchasing a real estate property than taking possession of the property after 591/2 would be subject to tax	Purchasing a domestic or foreign real estate property then taking possession after 59/1/2 would b tax-free

To learn more about the advantages of converting a Traditional IRA to a Self Directed Roth IRA LLC please contact one of our IRA experts at 800-472-0646.