No matter how much money you make – you can have a TAX FREE RETIREMENT ROTH 401k plan

Have you been told that you make too much money and cannot have a tax free retirement account such as a ROTH IRA? Then it’s time for you to celebrate because Congress solved your dilemma with the American Taxpayer Relief Act of 2012 (ATRA). If this official designation isn’t ringing a bell, how about the more popular title- Fiscal Cliff legislation?

Basically, Congress finished what they started in 2010 when they allowed 401k participants to convert tax-deferred distributions into a tax-free forever ROTH plan. The ATRA legislation expanded this option to allow unlimited 401k conversions of all tax-deferred funds, not just distributions.

Here’s the kicker – there is NO INCOME CAP, no matter how much money you currently earn, you can convert any amount of tax-deferred 401k funds PLUS make yearly contributions of between $17,500 – $23,000 (Based on age). Now wait-a-minute, before you break out into your happy dance there is one major caveat – your employer has to add the ROTH election option to the company plan.

What if your employer does not offer the ROTH option? No need to despair, the good news is, you can have your own personal ROTH 401k.

Yes, even if you work full time for an employer you can qualify for a solo 401k as long as you have a legitimate sideline business. This business activity can be operated in your personal name (sole-proprietorship) so there is no need to create a business entity. Your solo ROTH 401k also includes your spouse so either of you can be the one with the business activity which must be real, no smoke and mirrors.

What does it take to prove your part-time business is real? You must keep basic records of income and expenses and you must declare the activity as a part of your personal tax return. If you follow these simple rules and work with a solo 401k expert you can begin nurturing your very own TAX FREE FOREVER ROTH nest egg today. Oh by the way, I forgot to mention that you (and spouse) control the ROTH 401k checkbook making it easy to invest in other assets such as real estate and precious metals. You can still have a tax free retirement.