"You pay the tax on the way in so you don't have to pay the tax on the way out," says Ed Slott, a certified public accountant and founder of Ed Slott and Company and irahelp.com.
Ed Slott, a CPA in Rockville Centre, N.Y., recognized that Roths would become a game changer and started a newsletter in 1998 to teach advisers about the accounts.Slott calls Roth IRAs "tax insurance" because once you're invested in one, you won't have to pay taxes on contributions or earnings again.
"If you have something that you think can appreciate greatly, that's what you want in a Roth because everything in a Roth will appreciate tax-free," Slott said.
"In fact, there may never be a better time to do one, since tax rates are so low, and they're likely to rise in the future," said Ed Slott, founder of IRAhelp.com.
Ed Slott, Ed Slott & Company, and Carrie Coghill, Coghill Investment Strategies, discuss their strategies for protecting 401(k) accounts.
The Roth IRA, which turned 20 years old this month, can be especially beneficial to younger investors and offers features different from traditional IRAs.Retirement expert Ed Slott explains the pros and cons of investing in a Roth IRA.
Under the new rules, more investors will time their Roth conversions for year-end, experts predict.The sweet spot will be between Thanksgiving and mid-December, says Ed Slott, a certified public accountant and founder of IRAhelp.com.
People in high-tax areas are swarming their local town halls in a rush to pre-pay their property taxes.Ed Slott, CPA and founder of IRAHelp.com, and Carrie Coghill, Coghill Investment Strategies debate the merits of that strategy.
"My real estate taxes are about $20,000 on a regular, middle-class house," says Ed Slott, a CPA in Rockville Centre, N.Y."If you're paying that and working in New York City, where your state and city taxes can be 10 percent of your income, that's a big deduction to miss."
