Finance a Business Using Your Roth Funds With Help From DRDA CPA

Planning for retirement can begin at any age, in fact, the sooner the better. So when it comes to choosing a suitable retirement account you may be wondering which route to take. There has been a lot of buzz lately surrounding the benefits of choosing a Roth IRA over a traditional IRA account. The advantage of a Roth IRA lies in the fact that it provides tax-free growth versus a frequently taxed account.  DRDA CPA, home of the BORSA (Business Owner’s Retirement Savings Account) plan, has a team of financial planning experts that can help you choose an account and realize its full potential. You can even buy a business with your Roth funds.

In order to truly make a retirement account work for you, understanding the basic principles is essential.  Below are the three basic types:

Regularly Taxed Account

In order to pay into such an account, you much first pay income tax and then make your contribution with post-tax funds. Unfortunately, as your principal grows, it is subject to taxes on dividends and capital gains. You must also pay taxes upon withdrawal.

Deductible IRA

With this account you can deposit pre-tax dollars and the principal grows tax-free. The major drawback is that you must pay income tax on the entire amount when you withdrawal.

Roth IRA

Much like a regularly taxed account, you must pay into a Roth with post-tax dollars, but after that you are not required to pay any further taxes, even upon withdrawal.

Now that you have learned the subtle differences between each kind of account, you should know what makes a Roth stand out from the rest.

A Roth IRA offers more flexibility than a traditional account in that you are not required to withdrawal your money at a set age. In fact, since you have taken care of your tax obligations up front you will face fewer restrictions in the long run.

The simplicity of a Roth is what attracts most people because there are no special requirements to reporting to the IRS.  Another advantage to a Roth IRA retirement account is that it can be used to finance a business in conjunction with a BORSA plan.

A BORSA plan, offered by the DRDA CPA firm, is an alternative source of capital that allows you to start a business or purchase a franchise using the funds from a retirement account. The best part is that there are no penalties, distributions, or taxes for early withdrawal. You can also combine a BORSA plan with an SBA loan.

There are infinite possibilities when opening a Roth IRA such as financing a business with your Roth funds or simply benefiting from a basically tax-free retirement account. The DRDA CPA’s team of financial experts will work closely with you to make the most of your retirement account. To learn more about  the BORSA funding source that uses funds from a Roth IRA call 281-954-6040 or visit www.borsaplan.com today!