What you put in, stays in, and earns additional money for you. And, the longer you leave it in, the more it grows.

At the same time, the Roth IRA is a bit more accessible since you can make withdrawals from it, provided you have had it for at least five years and you are at least 591/2 years old. There are no penalties for early withdrawal from a Roth IRA and, because the income taxes were paid up front, there is no tax to pay at the time of withdrawal.

There are some rules that govern contributions to a Roth IRA. For example, you can contribute up to $4,000 per year as an individual, but if you are 50 or older you can make an additional contribution of up to $1,000 as of 2006, in order to "catch up." As long as you have income ? from either work or alimony in most cases, you can make contributions to a Roth and you can keep doing so, no matter how old you are. You don't qualify for full contributions to a Roth IRA if your modified adjusted gross income (AGI) is over $95,000, but can make partial contributions if you don't earn more than $110,000.

Married couples can make full contributions to a Roth IRA if their joint income doesn't top $150,000, and partial ones if their income isn't over $160,000.

There can be retirement advantages to a Roth IRA, primarily that the taxes have already been paid and there are none due upon withdrawal. Many people have converted their traditional IRAs to Roth IRAs as part of their estate planning processes. The transfer rules are somewhat complex, however. In order to withdraw money from the traditional IRA, taxes on it must be paid at the time of withdrawal. If the additional income in the year the money is withdrawn kicks the individual into a higher tax bracket, the tax bite can be more than anticipated.

While there are advantages to the Roth IRA, make sure you consult with your financial planner and estate planner to make sure you are cognizant of and meet all the rules.
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The elf directed IRA empowers the investor to make the type of investments not normally thought of for an IRA such as real estate, mortgages, and notes among others.SelfDirectedIRA.org through relationships established with major financial institutions, qualified custodians and vendors, helps the consumer find the proper resources and also provides links directly to their sites. Each of the sites listed on the SelfDirectedIRA.org site are investigated and reviewed. The SelfDirectedIRA.org site is updated frequently with new and relevant content including news feeds from all major sources providing consumers with up to the minute information about Self Directed IRAs.SelfDirectedIRA.org provides free education through informative articles including tips and strategies money management. Visit the site at http://www.SelfDirectedIRA.org Contact Information:Gary SmithSelfDirectedIRA.org702-368-7530http://www.SelfDirectedIRA.org.

However, unlike the traditional IRA, you can withdraw your contributions from a Roth IRA at any time, at any age without penalty. Earnings are not taxed if you wait until at least age 59 1/2 to begin withdrawing them and have held your Roth IRA for at least five years. With a Roth IRA, the contributions are taxed without any deferment, but they grow tax-free and the gains are never taxed (see above). With a 401(k), contributions are tax-deferred, but eventually the contributions and gains will be taxed. By the time most people retire, the earnings from their retirement accounts will far exceed their contributions, due to compounding.

With that in mind, one could make the case for a Roth IRA possibly being better than a 401(k). Here's an illustration. Let's suppose that over the course of 25 years you contributed a total of $75,000 to your 401(k) and your employer kicked in $30,000 during that same period for a total of $105,000. By the end of those 25 years, your compounded gains (assuming you're getting a decent rate of return) could total $500,000. When you retire, you will eventually pay taxes on the entire $605,000 as well as the gains you receive from it after retirement.

Now, let's assume that, instead of contributing to your 401(k) for those 25 years, you contributed only $50,000 to your Roth IRA (without a matching contribution from your employer, of course). The assumption is also that you would not be able to contribute as much because you are using post-tax dollars for the Roth IRA vs. pre-tax dollars for the 401(k). However, because you generally have more investment options with the Roth IRA money than with the 401(k) money, you are likely to find a better rate of return. With that in mind, let's say your compounded gains could total $400,000.

When you retire, you could have the entire $450,000 as well as the gains you could receive from it post-retirement, completely tax free! As you can see, it is possible that many people could come out better putting at least a portion of their retirement funds into a Roth IRA. Judge for yourself. I actually contribute more to my Roth IRA than I do to my 401(k). I put just enough into my 401(k) to get my employer's maximum matching contribution, and that's all. However, I'm not a financial advisor and I don't play one on TV, so check with your financial advisor to see what would be right for you.

For more information about the Roth IRA, see the following link: http://www.rothira.com..

In 2004, the adjusted gross income limits were:?If your tax filing status is "Married Filing Jointly" - $160,000 ?If your tax filing status is "Married Filing Separately" (and you live with your spouse) - $100,000 ?If your tax filing status is "Single", "Head of Household" or "Married Filing Separately" (and you did not live with your spouse during the year) - $110,000Now, here is a little known totally legal secret that is worth your time reading this article. When I taught investment at the University of South Carolina I gave 10% credit of the course grade for the simple act of opening a Roth IRA. I was amazed when a few students would not open one because their parents had told them it was illegal to if they did not have a job. I told them that they were going nowhere fast if they could not think creatively enough to just go mow a lawn somewhere for ten bucks and put it into the account. I made it clear to them that wealthy people become so by taking action nut just thinking about taking action! The best application of this concept I ever learned was a real estate investor that wanted to open a Roth for his newborn son.

The problem of proving that a newborn makes money in a job is a tough one even for my noodle but this fellow came up with a great idea. He took a photo of the baby and put it on the business card with the words; "Help my dad finance my education by buying a home from him?he is the best dad in the whole world!" Then he paid the baby, get this?modeling fees! He put those fees straight into the account and filed a return for the baby with the IRS. I love that story! Talk about creative that is the kind of person that will go far in business. This is also the only newborn I have heard of with a tax free stock portfolio from earnings off his own job!The second Roth IRA contribution limit has to do with how much you can contribute to your account. Below outlines the contribution limits established for the next several years:?2004 - $3,000 ($3,500 if you are age 50 and above)?2005 - $4,000 ($4,500 if you are age 50 and above)?2006 - $4,000 ($5,000 if you are age 50 and above)?2007 - $4,000 ($5,000 if you are age 50 and above)?2008 - $5,000 ($6,000 if you are age 50 and above)If you need more information about Roth IRAs, you should consult a tax professional such as a Certified Public Accountant or Certified Financial Planner.

You can also get more information directly if you take a look at IRS publication 590 - Individual Retirement Arrangements. Using a Roth is the very best trading account to use while investing in the stock market..

The difference is that the traditional 401(k) is funded with "pre-tax" dollars and the Roth 401(k) plan uses "after-tax" dollars. However, with the Roth 401(k), withdrawal of your money at retirement will be tax free like a Roth IRA. The traditional 401(k) plan defers the tax owed during your career until retirement.Although it may sound like the best of both worlds, it is important to note that no employer is required to offer this new Roth 401(k) plan. In fact, a recent survey by employee benefits consulting firm Hewitt and Associates found that only 31 % of employers currently offering the traditional 401(k) plan are considering implementing the new Roth 401(k). Employees may now want to begin inquiring whether their employer will be offering the new retirement plan in 2006.

Contribution limits for the retirement plans are: in 2005, $14,000 for a 401(k) and $4,000 for an IRA, whether Roth or traditional. In 2006, this amount will increase to $15,000 for both 401(k) and IRAs.For in depth answers to your retirement and investment questions visit http://www.HowMuchAnswers.com - providing simple and easy to understand information about 401(k) plans and IRA accounts..

Traditional IRA plans and 401K plans have the effect of converting your portfolio capital gains into taxable income at the time of withdrawal.LONGER COMPOUNDINGUnlike traditional IRA plans, Roth IRAs have no required mandatory withdrawal dates based on your age, and therefore allow you a longer time horizon for portfolio compounding and capital gains growth. Inside traditional IRA plans you are required to made mandatory minimum withdrawals (that will be taxable) after 70 years of age.ESTATE TAX REDUCTIONYour heirs will not be required to pay tax on the benefits received from your Roth IRA plan. In contrast, taxed would be need to be paid by your heirs to receive the benefits of a traditional IRA plan.EARLY WITHDRAWALSIn the event you need to access funds in the event of an emergency, the Roth IRA plans treat withdrawals differently that a traditional IRA. You don't pay tax on withdrawals from a Roth IRA until the amount exceeds your actual contribution amounts paid in. This is not true of an IRA, and you will also face an additional early withdrawal penalty in many cases.

IS A ROTH IRA RIGHT FOR YOU?In this article we have covered 7 of the powerful investment benefits you can reap holding a Roth IRA plan. Only your professional investment advisor can advise if a Roth IRA is right for your circumstances. Take the time to learn more about the power of a Roth IRA plan and contact your advisor today. It may be the best investment move you ever make.About the Author is a freelance writer, contributor, and editor of the http://www.rothira401k.com/ information portal..

Since we started based on consumer demand five years ago, we have noticed a huge surge in the number of investors wanting to explore alternative investments and other options, said Daniel Cordoba, CEA and principal, Asset Exchange Strategies. We are happy to bring our knowledge to this package and make it available through an IRS compliant IRA LLC to provide greater freedom to CEAs and investors in making transactions and protection for the investment itself. With the added backing of a leader like NAFEP, advisors and investors are receiving a distinct strategic advantage.Investing and purchasing alternative assets through an IRA has been growing in popularity, due to the added tax benefits and greater diversification it can provide, since the increasing uncertainty of the stock market in 2000. Alternative investments (barring insurance contracts and certain collectibles) are within IRS guidelines so long as specific regulations, of which Asset Exchange Strategies specializes in, are met. As part of the agreement, Asset Exchange Strategies will provide training to CEAs on self directed IRA regulations and on strategies for putting real estate and other non-traditional assets in an IRA, through its Six Steps to Success online, educational programs and marketing through an IRA LLC Web Page.

Daniel Cordoba will also serve as an advisory board member on NAFEP.About Asset Exchange Strategies, LLCAsset Exchange Strategies advises clients on self directed IRA rules and how to buy real estate and other non-traditional assets with IRAs, 401Ks, SEPs, and other retirement programs to obtain greater control over investment options while earning tax favorable growth that IRAs enable, offering complete support, advice and reporting for investment transactions. Similar to a traditional financial advisor, Asset Exchange Strategies works with investors to assess their unique objectives, risk tolerance and other factors, educate them on options and institute a program that allows them to select from a much greater breadth of investment choices. Using their knowledge of industry regulations, Asset Exchange Strategies is able to provide lower fees and greatly expanded investment options. They also enable investors to have greater control over IRA investment transactions and reduce investor risks and liability through the protection of a Self-Directed IRA LLC that offers investors direct management and checkbook control of their retirement funds. Asset Exchange Strategies is online at http://www.MyRealEstateIRA.com.

About NAFEPNAFEP is a privately held, for profit organization based in Salt Lake City, Utah. The company was formally launched on April 15, 1993. The original founder, Mike Janko, is President and Executive Director. NAFEP's? Board of Directors and separate Advisory Board (see links below) contribute significant legal, estate, tax and business planning expertise to the organization. The primary business of NAFEP is two fold:1.???Provision of estate planning consultation and documents through a nationwide network of professional sales associates2.???A training and certification program for professionals known as Certified Estate Advisor?(CEA?).

NAFEP professional sales associates are either attorneys, CPAs or financial planners who have completed the CEA?.NAFEP has developed an array of both standard and sophisticated estate planning services which sales associates and CEAs (members) provide to their clients. The organization provides significant education, support and materials to its professional member network. In a typical case, a prospective estate planning client and a NAFEP member explore the clients estate planning needs. The member, using NAFEP training, information and consulting, assists the client in appropriate estate plan selection. The member and client then use a NAFEP application to collect the necessary information for that clients estate plan.

In this process, the client retains a NAFEP trained attorney to handle the plans document creation. All legal documents are produced by the NAFEP attorney at the home office. The completed document package is shipped to the professional member who, with assistance of appropriate legal professionals, leads the client through execution and funding of the program. NAFEP is noted for its first class educational programs in estate planning. The Certified Estate Advisor? (CEA?) training and curriculum is recognized for continuing education credits by many states around the U.S.

and by the Certified Financial Planner (CFP") Board of Standards. Many broker-dealers recognize and promote the designation as well. To obtain the certification, qualified professionals go through a NAFEP developed course, in which they receive in-depth training in estate planning, and then take the CEA? exam. Other NAFEP training and continuing education courses are provided to these professionals via NAFEP publications and at training conferences. http://www.nafep.com.

This can be done without distributions, taxes, penalties, or the use of loans. In many cases the money can be used as venture capital to avoid loans, fees and interest. Following is what the IRS said about these matters in a favorable Letter of Determination it sent to a Cash Now client: "These transactions are clearly within the letter of the law as spelled out in the Employee Retirement Income Security Act of 1974 (ERISA)." "Our tax consultant has more than 12 years experience setting up Rainmaker Plans and has never had a problem with the IRS," said Andrea Zecevic, Cash Now's president. "What we're doing here is providing a proven road map for unlocking tremendous assets and capital, while avoiding future problems. This plan is laid out in the law and our tax consultant will obtain a letter approving the use of these funds in this way." The IRS has established numerous rules to keep future retirees from spending the funds held in trust and awaiting them at retirement.

Distributions are taxed as ordinary income--upwards of 50%. However, Cash Now advisor Leonard Fischer, using some of the provisions of ERISA, has developed a way to legally move money locked in 401(k) or other IRA rollover accounts directly into a new or established business without distributions, taxes, penalties or the use of loans. The money may be used for franchises, property, equipment or working capital. The Cash Now tax consultant charges a flat fee for these services and does not sell investments. Cash Now BackgroundCash Now Corporation, a pioneer in the payday loan industry, is developing the most comprehensive menu of services in the cash advance industry, all centered on the Cash Now brand.

The company's proven business model includes licensing to corporately operate joint venture locations across the U.S. and Canada. Additionally, Cash Now's Web site is the most advanced payday-lending portal, offering key insight clients and potential clients alike. Cash Now offers a payday loan license program, Payday Express; and a payday loan and check-cashing license known as Check Express. Profit Guide magazine recently ranked the Cash Now Group 10th in its list of the 50 fastest growing and most promising emerging companies.

For more information about CASH NOW CORPORATION and opportunities associated with Cash Now see http://www.cashnow.com Contact: Cash Now Corporation (CHNW)Andrea Zecevic, Toll Free: 1-866-778-2996 e-mail protected from spam bots.

A ChecklistBefore we proceed, A couple things to please keep in mind. A ROTH IRA, while completely simple and easy for all of us to understand, is not without complexity, and each individual is different. Laws change, so always check with your financial advisors before proceeding to take action. The information contained in this journal are solely the opinions of this writer, so be sure to seek out solid financial advice before making any important decisions. Be sure to do your own research and conduct your own financial assessments prior to changing any investments or making any new financial decisions.

While I welcome the opportunity to introduce you to the ROTH IRA in my own words, please make sure that you assess your retirement plans on your own, alongside those financial advisors that you trust and rely upon. With that said, let's proceed!1. What is a ROTH IRA?

1. A ROTH IRA is a wonderful product that came into existence as a result of the Taxpayers Relief Act of 1997. It is a new tax-shelter for the average American, and a new opportunity to take advantage of certain benefits that were previously unavailable.
2. A ROTH IRA, in part, reverses the process from that of a regular traditional IRA account. The down side is that there are no tax deduction benefits for your contributions.

   The plus side is that the contributions you make, are POST-TAX?In other words, you're not using the ROTH-IRA before taxes are taken out of your paycheck. You're using the ROTH-IRA from your Net proceeds of your paycheck, or after taxes are taken out. Why is this absolutely wonderful? Well, I'll get to that in a minute.

3. Most of us can add up to $3000 (as of 2004) per individual into each account per year. Now of course, if you're married, then you can add up to $6000 per household, combined into two ROTH-IRA accounts, per year! That's enormous. Absorb that for a second.

   You and your family, can invest $6,000 additional monies, per year, in a tax-shelter, that will earn revenue TAX-FREE!

4. After 5 years, the principal can be distributed, even though the earnings should remain in the account to avoid taxation and penalties. What this means is, that you are not restricted completely from this money. After 5 years, options become available to you. This is nice, because this means that you do not, necessarily, need to wait until retirement, to extract funds, should the need arise. Of course, early withdrawal penalties may exist as they do in many tax-shelters, however, the point is that there is added flexibility in the ROTH-IRA, that was previously unavailable.

Which way should I go?ROTH IRA or Traditional IRA?...Perhaps!

1. Now whether to go with a ROTH IRA or a traditional IRA account is really up to you and and your financial advisors. This is a subjective decision, and each persons needs and requirements are different. Here are a couple things that I keep in mind, however, when I'm examining the ROTH-IRA for my family:
2. Do I have a 401k, and a company sponsored Savings or Pension plan, and a Bonus plan, and a variety of other tax-shelters, and retirement programs? If I do, then perhaps I don't necessarily need a traditional IRA account, because I already have investments working to my benefit, pre-tax. Perhaps if I were to sit down and do the math, I would see that all my pre-tax bases are covered. What I need now, is the next step?What I need now, is a way for my family to invest my POST-TAX dollars smartly.

   What I might need, is a ROTH IRA?Perhaps.

3. Am I planning on extracting the EARNINGS of this fund, before I retire? Now, I'm not talking about the Contributions. This is an important distinction that was previously discussed. I'm talking only about the Earnings. Anyway, if the answer is YES, then I may want to look into a regular, typical, standard brokerage account, and forget IRAs altogether. Remember, both the ROTH-IRA and the Standard IRA are designed as tax-shelters that the average American family can use to grow their assets for retirement purposes.

   If my assets are much larger and robust, then perhaps a ROTH IRA may be small potatoes, too restrictive, and I should just go with a standard taxable account for much greater flexibility?Perhaps.

4. Do I have very few company-sponsored retirement choices? Do my earnings place me in a higher-tax bracket, and thus, I might need to seek out the benefits of a tax-deduction? Do I already have a traditional IRA, and thus, I may need to consider whether or not a "conversion" to the ROTH-IRA is a benefit or a penalty? Is the Traditional IRA a better choice for me? Perhaps.
5. And of course, there are so many other questions that go into this important decision. However, perhaps the above points will help you get a feel, a direction, an overall understanding, of which choice may be better for you. Personally, I think the ROTH IRA offers the most compelling benefits to the most people. It certainly does for me and my family. So, as you journey forward in examining these two tax-shelter accounts, make sure to ask the important questions, as the ones I've suggested above.

When Should I start Investing in a ROTH-IRA?

1. The ROTH-IRA is a fabulous "next step" on you journey to cleaning up your financial house, and moving from the reactive you, to the wealth-building active you. Don't start with a ROTH-IRA. Think of it as the icing on the cake.
2. Your first steps should always be the basics. Get your finances in order.

   Pay off your debt, create a budget and develop good spending habits. Work towards exploiting all of the retirement benefits that are available through your employer or business, such as a 401k, a Pension account, company stock options and contributions, You see, the ROTH-IRA becomes important, when you've done all of these other things. Now, you are asking yourself, "What else can I do, to build wealth faster?" That's Excellent! And that's the time, when the ROTH-IRA is the best, obvious next choice!

3. Do you own your home yet? If you don't, than might I suggest that you consider this as your most important priority, pre-ROTH-IRA. In 2003, our Real Estate in the Sacramento area, overall, appreciated 15.5%! All you have to do, to enjoy this amazing financial vehicle, is to simply own your own home. Now it may not always be as amazing as 15.5% appreciation, but overall, arguably, there is no faster, easier, and better way to get to wealth, then through home ownership.

   .

1. Assuming 9% investment earnings
2. Assuming a monthly investment of $500...
3. I'm making the assumption that you're married, and you're investing into 2 ROTH IRAs, rather than one...Thus, I'm going to calculate on a per family basis...If you're only an individual, you can only calculate for one ROTH IRA, and your monthly investment would be $250.

With all of this working in your favor, truthfully, you're not just talking about one million dollars, you're probably talking about working towards a retirement goal of three million dollars or more, all from passive investment programs, like the ROTH-IRA.5. The ROTH-IRA Checklist Take one step at a time my friend. Start with passive wealth generation, and then go from there. Here's a brief recap-checklist to consider:

1. Clean up your debt.
2. Develop a budget, and practice good spending habits.
3. Participate and maximize your employers' 401k program.
4. Participate in your employers' Pension, Savings, and Company Contribution programs.
5. Own your own home.
6. Contribute into your own ROTH-IRA account.
7. Develop other avenues beyond passive wealth-building.

Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.Publisher's Directions: This article may be freely distributed so long as the copyright, author's information, disclaimer, and an active link (where possible) are included.Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site..

Earnings are not taxed if you wait until at least age 59 1/2 to begin withdrawing them and have held your Roth IRA for at least five years. With a Roth IRA, the contributions are taxed without any deferment, but they grow tax-free and the gains are never taxed (see above). With a 401(k), contributions are tax-deferred, but eventually the contributions and gains will be taxed. By the time most people retire, the earnings from their retirement accounts will far exceed their contributions, due to compounding. With that in mind, one could make the case for a Roth IRA possibly being better than a 401(k).Here's an illustration.

Let's suppose that over the course of 25 years you contributed a total of $75,000 to your 401(k) and your employer kicked in $30,000 during that same period for a total of $105,000. By the end of those 25 years, your compounded gains (assuming you're getting a decent rate of return) could total $500,000. When you retire, you will eventually pay taxes on the entire $605,000 as well as the gains you receive from it after retirement. Now, let's assume that, instead of contributing to your 401(k) for those 25 years, you contributed only $50,000 to your Roth IRA (without a matching contribution from your employer, of course). The assumption is also that you would not be able to contribute as much because you are using post-tax dollars for the Roth IRA vs.

pre-tax dollars for the 401(k). However, because you generally have more investment options with the Roth IRA money than with the 401(k) money, you are likely to find a better rate of return. With that in mind, let's say your compounded gains could total $400,000. When you retire, you could have the entire $450,000 as well as the gains you could receive from it post-retirement, completely tax free!As you can see, it is possible that many people could come out better putting at least a portion of their retirement funds into a Roth IRA. Judge for yourself.

I actually contribute more to my Roth IRA than I do to my 401(k). I put just enough into my 401(k) to get my employer's maximum matching contribution, and that's all. However, I'm not a financial advisor and I don't play one on TV, so check with your financial advisor to see what would be right for you. For more information about the Roth IRA, see the following link: http://www.rothira.com..