July 2008

Open a Coverdell Education Savings Account Now!

We are happy to announce that you can prepare for your child’s future by opening a Coverdell Education Savings Account now by going to www.wealthyIRA.com to sign-up for Platinum Service.  If you have children or grandchildren, you know that one of the biggest expenses in their future will be their education.  As an incentive to help parents and others save for their children’s educational expenses, the Federal government created the Coverdell Education Savings Accounts (ESA).  One of the great features of the ESA is that almost anyone can contribute to the account to help the student.  This means that not only parents, but grandparents, uncles, aunts or friends can contribute to an ESA.  Unlike other educational savings plans that restrict the use of the funds to higher education, an ESA can be used for both elementary and secondary education as well as college education. When the account is used for educational expenses, the funds are completely tax-free.  Since the funds can be used to help pay for elementary and secondary educational expense, as well as college, it is wise to open your account as soon as possible.  What a great way to welcome a new member to the family and to begin preparing for their future. Like any non-taxed account, by starting early and putting the funds to work, after eighteen years, you would have a significantly greater amount to apply to the student’s educational expenses then what you might save in a taxable account.   To start the process of providing for your child’s education, you go to our website at www.wealthyIRA.com and Platinum Service.

IRA Services Investing Into Real Estate

Looking to invest your IRA into Real Estate to secure your future?  You can by going to www.wealthyIRA.com and ordering “Is your IRA in Real Estate? It should be” the Manual & CD program and sign-up for Platinum Service while ordering “Is Your IRA in Real Estate? It should be.” Platinum Service provides you with the right answers to specific questions you may have about how to invest your IRA or other self directed retirement account in Real Estate.  All the tools, resources and personalized counseling to easily walk you through unlimited transactions for an entire year.  Included with Platinum Service are qualified representatives providing all the necessary forms, assistance and advice on how to complete the forms needed for as many real estate transactions as you would like to do as part of your Platinum Service membership.

The Pension Law Changes

By now many of you are aware that Congress passed and President Bush signed a major pension law in 2006.  Some of the features of that bill may be very important to Individual Retirement Account investors.  Most importantly, contribution limits have been made permanent; this means increases to $5,000 for individuals under 50 and $6,000 for those over 50 are secure.  Furthermore, after 2008 the contribution limits will continue to adjust with inflation.  Conversions to Roth accounts from pension plans, like 401k accounts, may now be made via a direct transfer to a Roth IRA, rather than having to go through a Traditional IRA.  Another feature that is now available, is to have your tax refund sent directly to your IRA.  And finally, since 2007 you are allowed to make a direct tax-free charitable donation from your IRA.  This avoids taking the distribution as taxable income and then donating.  Also, these donations do not count toward the maximum limit on donations allowed.  If you have questions, go to www.wealthyIRA.com, order “Is your IRA in Real Estate? It should be” the Manual & CD program and sign-up for Platinum Service so we may better assist with your IRA needs.