Save up to 40% in Taxes when Converting Traditional Retirement Accounts into Roth

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There are many reasons to like retirement accounts such as IRAs and 401(k)s.

After all, these are straightforward – and 100% legal – tools available to all Americans wishing to lower their taxes.

And after reading this report, you will have yet another reason to like them — an immediate potential tax discount when converting your Traditional retirement account to a Roth structure.

(With a Traditional IRA, you contribute pre-tax earnings. And with Roth, your after-tax money is used for contributions.)

Imagine a situation where your self-directed Traditional IRA invests $100,000 in a private company with huge upside potential. 

You want the growth of the investment over the coming years (and any future distributions upon retirement) to be 100% tax-free, so you decide to convert this investment to Roth. (The IRS generally allows such conversions with no limitations.)

Since contributions to Roth accounts must be made with taxed money, you must pay the applicable income taxes upon conversion. And it’s exactly at this point where significant tax savings can be realized.

Depending on the nature of the asset(s) held in your Traditional account, you can use various discounting techniques to convince the IRS that your assets are worth, say, $60,000, instead of the $100,000 that you paid for them. 

Therefore, you will need to pay income taxes on the discounted amount only.

Depending on the converted asset, discounts of up to 40% – and sometimes even more – are not rare.

And there’s more good news — the same discounting techniques can help you in other situations, too. For example, they can lower the valuation of your assets during a divorce, and also serve you well in terms of estate and gift tax calculations. 

For more information on how discounting techniques can help your situation, check out the latest Sovereign Confidential Monthly Report.

Important – We are not tax advisors and do not provide personal tax advice. However, we consulted with various professionals in the field who helped us craft this report. The main goal of this research report is to present you with the basics of valuation discounting. The actual calculations and the government regulations surrounding them…

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