Best Forex Brokers with IRA Accounts

In the US, there is a system in place whereby retirement savings can be given certain tax advantages, provided they are held in an IRA. These three letters stand for ‘Individual Retirement Account’ and are a type of individual retirement arrangement, and just one of the many account options available to Forex traders in the US. It also gives investors the chance to avoid taxation of their trading income and save for their retirement.
There are many different rules and requirements that come with an IRA, and for the best advice on whether Forex brokers with IRA accounts are the right choice for you it is advisable to consult a reputable tax adviser. The rules and regulations were developed and introduced by the IRS and the US Treasury department, and have served to make things a little confusing. Here we will give you some of the most pertinent facts regarding such accounts, but are unable to advise you on the best course of action. This is because everyone’s situation is different.

Different types of Forex IRA accounts

Basically, there are two different types of Forex IRA account:

• Self-directed IRA account – These are controlled by the individual and are established between the investor opening the account and a broker. The individual account holder controls all the money they wish to invest. Contributions are made with pretax dollars, with the balance of the account accumulating tax-free up until they are withdrawn at retirement. This is when the taxes on any profits are paid.
• Roth IRA account – A Roth IRA account can be opened through a broker, mutual fund or bank. Contributions are made with after-tax dollars. The balance in the IRA accumulates tax-free, but no taxes will have to be paid when withdrawal of funds takes place on reaching retirement age. Investors who are planning to be in a higher tax bracket when they retire prefer to use a Roth IRA.