Mar 26

IRA Financial Group Announces Miami Office Expansion & Relocation to Landmark Lincoln Road Building

IRA Financial Group, the leading facilitator of Self Directed IRA and Solo 401(k) Plans is pleased to announce the expansion and relocation of its Miami office to the landmark Lincoln Road Building – 1688 Meridian Avenue, the city’s premier business and shopping location.

Commenting on the Miami office move, partner Adam Bergman, said: “We are excited to be in a spectacular building in a prime location in the heart of the City of Miami Beach. The move underlines our intention to invest further in our Miami office where we have a very strong and expanding team of employees.” “With offices in Miami and New York City, IRA Financial Group has been able to assist thousands of clients invest over $1.2 billion of retirement funds in non-traditional investments over the last few years, “ stated Mr. Bergman.

He continued: “Our new expanded office provides us with high quality, flexible office space with room to expand. The move will enable us to support our current client needs as well as offer us the needed space to continue to provide high quality self-directed retirement services to our increasing expanding client base.”

Lincoln Road Mall is a pedestrian-only promenade and the epicenter of what’s happening in South Beach. Located between Alton Road and Washington Avenue, Lincoln Road offers unique shopping, sidewalk cafes, bars, galleries, and fine dining.
About the IRA Financial Group

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP. With our work experience at some of the largest law firms in the country, our attorneys legal and tax knowledge in this area is unmatched.

IRA Financial Group is the market’s leading “checkbook control Self Directed IRA and Solo 401K Facilitator. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at or call 800-472-0646.

Mar 21

Setting up a Roth IRA for Your Child

Traditional IRAs don’t make a whole lot of sense for young workers since they don’t need a tax break.  However, when Roth IRAs became available, they gave young people a chance to put away money for retirement that will be tax-free.  The one rule when it comes to young people and contributing to a Roth is that they need to have taxable compensation income.  Further, there are no age restrictions for opening up a Roth account.  Here will talk about how to set one up for your working child and the restrictions that they carry.

First off is the earned income requirement.  You child must earn taxable income to be able to contribute to an IRA.  This may include wages from working a summer job, mowing lawns, babysitting or even working for a family business.  Even if the amount earned is not enough to have to pay taxes on, it’s still considered taxable income.

If your child works for a “real” employer, i.e. not you or your family, it’s easy to show earned income.  However, if your child works for the family business or earns money doing chores, it may come under scrutiny from the IRS.  If income is earned through a family business, you need to show that your child was reasonably compensated for work he or she actually performed for the business.  Household chores on the other hand are harder to prove.  You may be able to show that your child did the work that they were compensated for, but it may not be considered taxable income.  How many people report money given to their child(ren) for doing chores?  The late Boris Bittker had this to say on the matter: “There’s little chance the IRS will actually challenge IRS contributions based on income from household chores, at least if you keep the contributions within the limit of amounts actually paid as reasonable compensation for work actually performed. But that doesn’t mean these contributions are legal and proper.”

Another thing to consider if you plan on contributing to your child’s IRA: Money in the child’s IRA belongs to him or her!  You cannot restrict them from using the money any way they please.  Consider that before giving them your hard-earned money.  One solution is to offer a parental match (just like you may get from your employer’s 401k).  Contribute a percentage of every dollar they they contribute.

There are income limitations and spousal rules that we have to deal with, but this really doesn’t apply to children.  One rule that will apply is contribution maximums.  For 2013, the maximum amount you can contribute to an IRA if you are under age 50 is $5,500.  However, if you don’t earn that much in the year you contribute, you cannot contribute that much.  You can only contribute the amount of earned income you have for the year.  If your child earns $1,000 bagging groceries, that’s the max they can contribute (even if you’re giving them money as well).

Finally, if your child is still a minor, you can open up a Custodial Roth IRA for your child.  The child still needs to earn taxable income, but you control the assets until your child turns 18 or 21, depending on your state.  Until then, you can keep your child from wasting the money, but you cannot use the money yourself.

If you have any questions about your child and Roth IRAs or are looking to set up an account for them, the tax experts at the IRA Financial Group are here to answer any of your questions and help you set up to better your child’s future.  Give them a call at 800.472.0646 or visit there website now!

Mar 19

Roth IRA v. Roth 401k

Ever since the Taxpayers Relief Act of 2013 went into effect, many people are looking into Roth 401k plans (if their employer offers the option).  Unlike traditional plans, where you get an upfront tax break and taxes are deferred until you withdraw during retirement, Roth plans are funded with after-tax dollars.  There is no tax break, but so long as you have ad the account for five years and are at least age 59 1/2, all distributions with be tax-free.  Is the Roth 401k better for you…or should you go with a Roth IRA?

To help you better understand, here are the main differences between the two different accounts:

Roth IRA

  • There are no Required Minimum Distributions (RMD).  You never have to withdraw money if you don’t need it.
  • You can withdraw as much or as little as you need.  If you never need it, that’s tax-free money you can leave to your heirs.
  • It’s easier to get your money tax-free from the IRA as opposed to the Roth 401k.  Distributions are “first in, first out”.
  • If you haven’t passed the five-year and age-59-1/2 tests, you withdraw after-tax contributions first.
  • You can reverse a Roth IRA conversion.  You have until October 15 of the following year to reverse all or part of the transaction back into a traditional IRA.  You have no such option with a Roth 401k.
  • In general, IRAs offer a wider range of investment opportunities than do 401k plans.

Roth 401k

  • You can convert any or all of your traditional 401k into a Roth at anytime regardless of age.  This is assuming your plan offers the Roth option and allows in-plan conversion.
  • Conversions to a Roth IRA usually must wait until you leave the company or reach age 59 1/2.
  • Employer-sponsored plans are better protected from bankruptcy creditors and lawsuits.
  • You may borrow from your Roth 401k plan at any time and for any reason
  • As with traditional plans, employers will match contributions you make into your Roth 401k
If you need help deciding which plan is best for you, contact the tax experts at the IRA Financial Group today!