Pros at Equity Trust Company Explain Pros and Cons of Roth IRA Plans

PHILADELPHIA, PA, May 02, 2013 (Press-News.org) According to Equity Trust Company, complaints about income taxes continue to rise--and as they do, the Roth IRA grows increasingly popular as an investment vehicle. The company points to a recent article from AARP Magazine, which argues along similar lines. AARP contends that, as income taxes get higher, more and more individuals are seeking to invest through Roth IRA accounts; the Roth IRA not only offers the opportunity to gain tax-free income in the future, but it also represents the most flexible of all retirement accounts. As the Roth account gains in popularity, Equity Trust Company has issued a new statement to the press, opining on the AARP article and on the more general trend toward Roth IRA accounts.

According to Equity Trust Company, the appeal of the Roth IRA is hard to argue with. "Since the inception of the Roth IRA, it's always been one of the most attractive retirement plan options," notes the company, in its press statement. "The advantages are clear: tax-free income, no required minimum distributions (such as with traditional IRAs), and the potential for tax-free wealth for heirs."

Meanwhile, AARP notes that both the traditional IRA and the Roth IRA are "basically savings accounts with good tax breaks." Nevertheless, the article contends that the Roth account offers several benefits that the traditional IRA does not. One particular thing that sets the Roth IRA apart from traditional IRA accounts is that it allows easy access to one's funds, regardless of age; a Roth IRA holder can access his or her money whenever it is necessary, without paying taxes or incurring penalties. Traditional IRAs, meanwhile, do not offer free withdrawals to account holders.

Another benefit that the Roth IRA offers is that money withdrawn from it is tax-free. To obtain this tax break, the account must be held for five years, and the account holder must be 59 1/2 years old or older. A final perk is that a Roth IRA allows account holders to leave tax-free wealth for their heirs. Those who inherit traditional IRA money must pay taxes on it, but those who inherit Roth IRA wealth do not. AARP notes that Roth IRAs are income tax-free for up to three generations!

At Equity Trust Company, complaints about income taxes are common, which is why the company advocates for Roth IRAs; additionally, Equity Trust Company offers self-directed retirement accounts to clients across the country.

ABOUT:

Equity Trust Company is the country's leading provider of self-directed IRAs and 401(k)s, with more than 130,000 clients in all 50 states and over $12 billion of retirement plan assets under administration. The company believes in self-directed retirement accounts as ideal vehicles for generating long-term wealth, as they allow investors the freedom to invest funds as they determine. At Equity Trust Company complaints about restrictive conventional retirement programs are commonly heard, and the company responds to these complaints by providing information about the alternatives available through self-directed programs.

Website: http://equitytrustcompanycomplaints.com