News Column

Equity Trust Company: Complaints About Retirement Tax Perks May Soon Diminish

Apr 1 2013 12:00AM



NEW YORK, NY -- (Marketwire) -- 04/01/13 -- According to Equity Trust Company, complaints about traditional IRA and Roth IRA accounts may soon grow less numerous, thanks to some provisions made available by the American Taxpayer Relief Act. The company points to a recent MarketWatch article, which notes that the American Taxpayer Relief Act -- better known as the last-minute deal made to avert the so-called "fiscal cliff" this past January -- contains some important new regulations that actually benefit those with retirement portfolios in place. Equity Trust Company has responded to the article in a new statement to the press.

According to MarketWatch, the new law makes it easier for workers to switch from a 401(k) to a Roth account -- assuming such a provision is offered by their employer. At the same time, those above the age of 70 1/2 can once again make their government-mandated IRA distributions into charitable donations.

The article notes that this benefit, which allows pre-retirees to shield their IRA distributions from income taxes, is not new -- but the law does come with some new provisions that make these charitable rollovers more advantageous than ever before. Indeed, MarketWatch notes that the charitable rollover option has never proven a major money-saver in the past, but now, the benefits it offers to taxpayers are much more pronounced and significant.

Equity Trust Company has issued a press statement, offering its own take on these new provisions. "Many investors can benefit from switching to Roth IRAs and Roth 401(k)s," the company notes. "While these plans don't allow for yearly tax-deductions, they can allow investors to take money out of the accounts without paying taxes, assuming they qualify and follow guidelines."

Continues Equity Trust Company, "These new changes can help investors and should reduce complaints."

For all of the benefits offered by these new legal provisions, MarketWatch notes that there are still some limitations. The charitable rollover option is solely available to those who are above the age of 70 1/2. Moreover, the maximum donation amount is $100,000. Individuals may wish to donate less, but some IRA custodians will not allow for small money transfers.

As for the 401(k)-to-Roth provisions, MarketWatch states that a Roth account is often the superior option for investors, but that the new rollover perk may or may not be the most prudent way to take advantage of the Roth account, depending on the particular needs of the investor.

Equity Trust Company offers investors the chance to establish their own self-directed retirement accounts; at Equity Trust Company, complaints about traditional retirement savings options are answered with the greater flexibility provided by self-directed portfolios.


Equity Trust Company is the country's leading provider of self-directed IRAs and 401(k)s, with more than 130,000 clients in all 50 states and over $12 billion of retirement plan assets under administration. The company believes in self-directed retirement accounts as ideal vehicles for generating long-term wealth, as they allow investors the freedom to invest funds as they determine. At Equity Trust Company complaints about restrictive conventional retirement programs are commonly heard, and the company responds to these complaints by providing information about the alternatives available through self-directed programs.

Source: Marketwire

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