WHAT IS A TFRA?
by Daniel Nicolaescu, MBA, RFC®
by Daniel Nicolaescu
smart investors love this strategy
More than half of all Americans have a taxable 401(k) or Roth IRA – and they’re paying taxes on growth as soon as they withdraw funds, living without guaranteed growth or principal, and facing up to 10% early withdrawal penalties.
Meanwhile, less than 0.07% of Americans have a Tax-Free Retirement Account (TFRA): A guaranteed-growth strategy for savvy planners that’s 100% legal when set up to comply with the current IRS tax code.
Ready to learn what the 0.07% already know?
Get answers to some of our most frequently asked questions about TFRAs and how to qualify below.
Why didn’t my financial advisor tell me about this?
- Most financial advisors don’t know TFRAs exist – or how to comply with the legal requirements that make them tax-free for their clients.
- If an advisor’s company doesn’t tell them to recommend TFRAs, they won’t.
What’s the difference between a TFRA and my 401(k)/Roth IRA?
With a TFRA, your growth isn’t taxed, and it’s set and guaranteed for the first year – last year, typical qualified individuals earned between 3-7%. Even better, there are no contribution limits, and the money you deposit and earn can be cashed out at any time – tax-free and without penalty.
This sounds too good to be true. What’s the catch?
No catch. A TFRA is not a new investment strategy by any means; wealthy individuals and families have used this type of account to build and pass on their fortunes tax-free for more than a century.
I’m interested, but I’m not super-rich. Can I qualify for a TFRA?
Glad you asked! Take our 30-second survey below and see if you qualify. Then, we’ll match you with a local representative who can help you understand if a TFRA is right for you.
Complete our 30 second survey below to see if you qualify.
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