What Is Residual Wealth Tax Free Income?

It’s not often that you hear about systematic, safe, proven steps to build a residual income that is FULLY tax-free. That is why today, we’re exploring tax-free investment strategies, how they work, the possible downsides and how the benefits make up immensely for the drawbacks.

Join me as I share the lesser-known strategies to build wealth tax-free. (and it’s not that hard – once you know how). These simple strategies for creating tax-free income would compound your small investments into large sums over time!

Value points:

● Four tax benefits the IRS allows that we can all make use of – deductions, exclusions, credits, and exemptions

● A proper residual income plan should include multiple sources of income, and at least one of these income sources should be non-taxable. 

Ways to stash cash to create a tax-free distribution-

1. Roth IRA – This investment strategy gets your money taxed before it goes in, so you have a tax-free sum.

2. Roth 401(k) or Roth 403(b) – You pay tax on the Roth contributions in the year you make the deposit and not in retirement. Roth 401(k)s   and Roth 403(b)s aren’t subject to income limits, so you’re eligible no matter how much you earn.

3. Municipal Bonds – these income distributions can be federal taxes free.

4. HSA savings account – This is a little-known way to invest for tax-free income. The HSA contributions are tax-deductible even for business owners, and there are no income limits.

5. IUL (indexed universal life) – An IUL allows your contributions to grow when certain financial market indexes grow. It not only grows while it’s doing well, but it’s protecting you from market downturns, which means that if the market were to plummet, you are not going to lose money.

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