Early Plan Needed to Exit Retirement Accounts

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Now, before retirement, is the time to act on forming a plan to exit IRA accounts to avoid tax ramifications and government plan regulations that cost investors considerable amounts of money and a revolutionary plan may assist investors who are looking to secure their retirement funds and limit distribution costs.

Young workers, or those who are closer to retiring, who are looking for an IRA Exit Strategy have a unique opportunity to prepare now, before their options are limited. Good advice is crucial in estate planning and retirement saving for the growth of assets. Without forethought, the plan to withdraw funds can cause havoc on savings.

Required minimum annual distributions, tax burdens and estate taxes are a few of the issues that need consideration. It is even worse to die with a valuable IRA, as it may be subject to double taxation. Estate taxes would take 45 percent and the remainder would be subject to 35 percent income taxes paid by the heirs. The total of these taxes could exceed 67 percent!

The leverage used to control real estate and increased housing demands make real estate one of the best investments of all, and it is also one of the best ways to create an Exit Strategy. Unfortunately, most retirement plans that set up property ownership using IRA funds don't address the exit plan for the investor. Technically, when real estate is purchased with IRA funds inside of the IRA, the property is owned by the IRA, not the individual. The person will need to either liquidate or distribute the property from the IRA in order to be able to use the funds, realize profits or personally occupy the property itself. A large portion of the value can be lost during liquidation to satisfy taxes or distribution costs, along with the potential penalties if the withdrawal is before age 59 1/2. If a well planned and executed Exit Strategy is not in place, the value of the account can be decreased substantially, even though investing in real estate can be very secure and profitable.

Sum Total Financial Management has a revolutionary plan to buy real estate outside of the IRA, and if used, the investor will already have a lucrative exit plan working. It is possible to use retirement funds to buy a new home, a vacation home or even investment property, outside of an IRA without making the IRS the largest beneficiary.

Terry Treudt of Sum Total Financial Management has perfected the method that will allow for the ownership of property outside of an IRA, while using the funds from an IRA fixed investment to pay for the property. The owner is able to take advantage of the full range of real estate tax savings and cost recovery strategies because the property is owned outside of the IRA. And since the property is owned outside of the IRA, the government's retirement plan law does not apply to the real estate. In this way, not only does the investor save money, but the investor is also able to personally enjoy the property and also profit from it before actually retiring. The investor retains complete control over the use, profit and tax benefits of the appreciating investment.

Sum Total Financial has done the research and is able to help navigate the legislative requirements and the IRA tax laws that can burden many investors. This plan is 100 percent compliant and is within all legislated IRS and IRA tax laws.

Since 1990, the Chicago-based company has served a coast to coast client base that includes both large and small businesses, as well as individuals interested in their financial well being. For more information on this plan visit http://www.usirarealestate.com


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