American IRA Explains the “Quirky” Rules of the Self-Directed Roth IRA

ATLANTA, GA / ACCESSWIRE / April 20, 2020 / A Self-Directed Roth IRA is like any other Roth IRA, with one twist: the investor is in charge of the investments. Yet this still means that investors should understand what a Roth IRA is, how it works, and what individual quirks might make it best for specific retirement goals. That was the message recently at American IRA, which published a post on the “quirky” rules of the Self-Directed Roth IRA and how individual investors can understand these quirks to build a retirement nest egg.

The most obvious “quirk” of the Roth IRA is that which defines it-an investor uses after-tax money to invest in a Roth IRA, allowing the money to then grow tax-free. Upon retirement, an investor can then withdraw this money without additional tax-the taxes having been paid on the front end. For retirement investors who anticipate paying in higher tax brackets later in life, this is a unique advantage that can lead to maximizing one’s retirement portfolio for the long-term.

But there are other individual quirks that the post points out. For instance, a Roth IRA does not have the usual RMD-required minimum distributions-associated with a Traditional IRA. This allows investors to continue growing more capital in their retirement account even after they hit the usual RMD age of 70 ½.

The Roth IRA is a popular option for investors, but it also has an individual quirk of having relatively low contribution limits, as does the Traditional IRA. American IRA’s blog often notes that it’s not possible for investors to go beyond these contribution limits by opening different types of IRAs. For instance, owning a Traditional and a Roth IRA will not allow investors to double their limits.

“Through this post, American IRA wanted to express why so many investors choose a Self-Directed Roth IRA,” said Jim Hitt, CEO of American IRA. “There’s more to the story than the defining characteristic of the Roth IRA. And investors who want success in retirement need to know about these quirks if they’re going to have as much success as possible.”

For more information, visit the post at or call 866-7500-IRA.

About: American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.

As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA.


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