The American Triamond™

PROVIDENCE KINDNESS REWARD

Tax-Proof Your Retirement Savings

What do CPAs have to say about the services offered by The American Triamond?

"All IRA's are either tax deferred (Traditional) or tax exempt (Roth). As long as you do not transfer specific funds from one type to the other there is no taxable event. Your personal account will be taxed in accordance with normal capital gain rules and has no bearing on your IRA accounts. In effect they are separate entities in regards to tax treatment. What you need to remember is that each account bears its own risk independently, and you are not really cheating the government; you are merely taking advantage of the tax breaks offered.

There are no prohibitions [against such transactions] as long as funds are not co-mingled. The reality is that Roth and Traditional IRA's were specifically designed to give taxpayers a break and as long as you abide by the distribution rules you can take full advantage of these breaks."

M. G., CPA
Illinois
May 2001

"Think of the Roth Account, IRA account, and the Taxable account as separate legal entities. The tax treatment of each account is independent of the other accounts.

Each account is a separate and distinct legal device and as such, there is no prohibition on [such transactions] as long as you keep the accounts separate and no transfers occur between accounts."

C. B., CPA
Arizona
May 2001

What does the IRS have to say about these services?

The following question was sent to the IRS prior to offering services to the public:

"Can it be considered an attempt to evade taxes, or is it always legitimate as long as the accounting is correct?"

The IRS's answer:

"I'm not seeing the 'tax evasion' logic in the strategy you've described. If you suffer a loss ... the money is gone, any gains in a Roth [IRA] will compensate for the loss."

Another question to the IRS was about allowing the underlying transactions. The answer:

"There is no prohibition against [performing transactions] with the intention to produce a tax loss in one account while producing a gain in another account. ...if one of the accounts is a regular taxable account and the other account is an IRA, or Roth IRA, or Educational IRA, you report gains/losses in the taxable account without regard to whatever happens in the IRA account."

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