Young entrepreneurs and their associates can create multi-million dollar retirement accounts that can provide life time tax free income.
This is the same method that famous billionaires, have set up to create these multi million Roth IRA accounts.
The Roth IRA was created by Congress to supplement the traditional IRA that employees use to create an individual retirement account. With the traditional IRA, the investor receives a tax deduction for the amount contributed to the account. The monies can then grow tax-free thru investment into stock and bond investments. However, upon retirement as money is withdrawn from the account, it is taxed as ordinary income.
However, the Roth IRA contributions, does not give the investor an offsetting tax deduction. However, it does grow tax free while inside the Roth IRA. The big advantage for the Roth IRA is that there is no tax on withdrawals at the time of retirement.
The limit to each years contribution is $6,000. So the young entrepreneur can purchase shares in his young Company for pennies, and watch it grow tax free over the years.