Retirement planning is an important factor in your long-term financial health. Whether that’s 35 years from now or 35 days, everyone should have some sort of plan to secure an income when they’re ready to stop working.
One of the best tools to do that is with a tax-free retirement account (or TFRA). This tried-and-true strategy is how the rich build generational wealth tax-free. The best part? When set up properly, these tools are IRS compliant and available for those who qualify (some restrictions might be age, profession, geographic location, and marital status).
Retirement planning is something everyone should consider, regardless of how far away retirement is.
One of the best ways to secure your financial future is through a tax-free retirement account.
TFRAs are special tools that are IRS compliant, allowing you to earn and grow your retirement income over time and give you more control over your financial security.
When it comes to financial matters and retirement planning, very few options are completely tax-free. However, are you familiar with the concept of a Tax-Free Retirement Account (TFRA)? All contributed money that you put into your TFRA, make from your TFRA, and take from your TFRA can be 100% tax-free.
This approach isn't new; it's what smart, wealthy families have been doing for decades to establish tax-free wealth that endures through generations. When appropriately established, TFRAs are fully aligned with both historical and current IRS tax regulations. One advantage of a TFRA is that any income generated within this account is not required to be reported as earnings. Technically, money made through a TFRA is not earned income.
Not everyone meets the eligibility criteria for this account type. Several limitations, such as age, profession, geographic location, and marital status, apply.