What Is The ‘Tax Never’ Bucket ?

Happy Tax Filing Day Everyone….
(Of course not business owners who had to file last month…)

Kevin Pritchett here with the third in my ‘The 3 Tax Bucket’s Series.

Previously I explained the ‘Tax Now‘ and ‘Tax Later‘ buckets and showed how each is designed to suck your hard earned money from you like a vacuum cleaner.  Today, I’m going to talk about the realm where you want to place as much of your assets as possible…..

‘The ‘Tax Never’ Bucket

I’ll bet 9 out of 10 of you had no idea there was even a ‘Tax Never’ bucket!!!  Well there is….and in fact there are 2 different ways to get there.

Roth IRA
The Roth IRA is a special IRA or retirement account where your money grows tax deferred and then when you take your money out …YOU ACTUALLY PAY NO TAX!!!  Yep…a true TAX FREE realm.

There’s some carve outs…of course…its the government!!

Carve out #1: Income Limits

Specifically,  if you make over a certain amount of income you don’t qualify for the Roth.  If you make less than the maximum income amount you may be eligible for a partial contribution.

A “full contribution” for 2017 and 2018 is $5,500. And if you’re 50 or older, it’s $6,500 because the IRS lets you contribute an additional $1,000. This is called a “catch-up” contribution.

If you qualify for a partial contribution, your financial advisor can help you determine how much you can contribute.

Carve out #2:  Contribution Limits
$6500 is the most you can contribute to a ROTH IRA in 2017 and 2018.   Hard to build up a large portfolio with only $6500 ($5500) per year….THAT’S THE POINT MY FRIENDS.  The government does not want you to build up a big TAX FREE next egg!!.  They want their tax.

But there IS a powerful, super conservative, legal, tried and true technique to build up as big a true TAX FREE income stream as you desire and place as much money in this strategy as you desire….stay tuned tomorrow!!

Remember…..
“Things don’t get better with neglect….”

Kevin Pritchett, Esq
Founder-The Founder/CEO Business Owners Collective (FBOC)

P.S.  If you just can’t wait and want all the details on how
to achieve true TAX FREE income, put your email
in the box to the right.