DEFER TAX PAYMENT

The tax on the earnings of a Traditional IRA are deferred until withdrawal. Therefore the taxes that should be due are continuing to earn additional value and will do so until the funds are withdrawn.

Taxes are paid on withdrawal of the funds at ordinary income tax rates (25-35%). Never put real estate in a traditional IRA. Real Estate is taxed at a capital gains (15%) at the time of sale. That beats 35% which you could pay on your traditional IRA.

PAY NO TAX

No taxes are paid on the earnings or withdrawal of the earnings on a Roth IRA or a 401K Roth IRA.

No taxes are paid if:

• The Roth IRA fund is at least 60 months old.
• The owner of the fund is at least 59 1/2 years old.
  
  

Real Estate fits well into a Roth IRA

0% Tax Beats 15-35%

Glenn Nichols 14905 Southwest Freeway Sugar Land, Texas 77478 (281) 207-5063 - office direct (281) 242-6754 - office fax (281) 277-2340 - home (281) 277-2346 - home fax Glenn@GlennNichols.com

SOUTHWEST

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