Take IRA Distributions and Pay No Taxes!

You thought that there were only two varieties of IRA, the Traditional and the Roth. With the Traditional IRA, you received a tax deduction on your contributions, which lowered your taxable salary and therefore your taxes. The catch was that when you withdrew your funds, even after age 59 ½ you had to pay income taxes on them.

With the Roth, you did not receive a tax deduction on your contributions but also did not have to pay taxes on your withdrawals.

Both allowed your investments to grow free of taxes.

To many retirees, the fact that their withdrawals are taxable, is a problem, especially in these days when the balances in the account are down considerably, lowering the available income even before taxes are taken out.

Now, you can have your cake and eat it too with a Traditional IRA whose distributions become tax free.

You get the tax deductions when you make your contributions to your Traditional IRA and you escape taxation on your withdrawals!

The trick is to generate tax deductions that offset the taxes due on the withdrawals.

Although many accountants know this and advise their clients accordingly, few tell you exactly how to effectively cancel out the taxes due altogether.

That is what I am going to tell you how to do in this article.

But before I tell you, did you know there is a way that you can make most of the money you are spending to support your family tax deductible? That’s right.

There are two tax systems in this country.

The one you are most familiar with is the one that takes 30-40% of your salary or other earned income, the one you were under your entire life, most likely.

The other tax system is for the wealthy and for businesses. That is how Warren can make $175 Million per year and be in a lower tax bracket than his middle class secretary.

That is how 60% of the corporations in this country pay no tax.

The way you can qualify to be under this tax system is to have a home based business.

Once you have your home based business, you qualify to be under the business tax system.

Your CPA or other financial professional can then advise you on how to write off what used to be your personal living expenses as tax deductible business expenses.

However, you must have a CPA or accountant that is expert in the area of home based business taxation. If he or she has not advised you on these tactics, it is either because they are not knowledgeable about them, this is a specialized field of taxation or you have not paid them to reveal them to you!

With the right advice, your business write offs will probably generate a loss to your home based business. These losses can then be written off against your taxable income, such as your IRA withdrawals, which will mitigate or even eliminate the taxes due on them.

Get with a qualified financial planner or CPA to learn more about this tremendous, money saving tactic.

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