Search Results for "Roth conversion"

Sometimes the costs are actually benefits when it comes to Roth conversions.

Converting early can avoid your exposure to tax changes going forward as a Roth IRA is never taxed again.

Roth conversions can decrease your taxable income and increase your tax savings over the long haul.

Required minimum distributions are taxed as taxable income, the same as other types of traditional IRA withdrawals and Roth conversions.

Taxes related to traditional IRA withdrawals only happen once. Meanwhile, the funds in your taxable account are subjected to taxation each year.

Waiting just one year means that you lose a portion of the growth in your traditional IRA to income taxes later.

Because so much of your net worth is in traditional IRA, how quickly you expect to withdraw from your retirement account assets will heavily influence how quickly or slowly the math would advise that you convert.

In this video, David used examples from our tax planning service to demonstrate what a Roth conversion plan might look like and how systematic Roth conversions can create a higher after-tax net worth in the future.

It is important to know the difference between these techniques to make sure you are maximizing your retirement savings.  

Roth conversions pay off. Repeat it to yourself now. Repeat it to yourself at tax time. Roth conversions pay off.

Luckily for Roth lovers like us, you don’t have to choose between Roth conversions or Roth contributions.

Most people are able to do direct rollovers from a traditional IRA to a Roth IRA. In this way, most people can do any number of Roth conversions in one twelve-month period.

Why do people do Roth conversions? Should I? This timeless article and video answers all your questions.

This 2020 article reminds us that if you ever sad about the size of your IRA balance, it might be a good time to convert to Roth.

In the eyes of the IRS, Roth conversions are a type of rollover and their part in your Roth IRA’s contribution basis is called a rollover contribution.

In this talk, David demonstrates how Roth conversions can be extremely valuable even if a client is always in the same tax bracket.

Alas, the year you move the funds from traditional IRA to Roth IRA is the year that those assets are taxed.

This 2017 article reminds us that there is not one best Roth conversion plan that you can apply to everyone.

Unfortunately, as part of the Tax Cuts and Jobs Act back in December 2017, Congress eliminated the ability to undo Roth conversions, so there isn’t a way to undo a conversion.

Convert something today. Convert because the markets are down, or maybe convert just because you likely won’t regret it in 30 years when the markets will likely be up a lot more than they are now.

There are several ways that a Roth conversion benefits people regardless of their filing or marriage status.

Kudos to you for noticing the value of Roth conversions! We have three ways we can help.

Thirty years of interest, dividends, and capital gains tax is a significant savings.

With a thorough understanding of the IRS rules, performing a Roth Conversion even after your so-called Required Beginning Date (RBD) can be both easy and profitable. This 2016 article teaches how.

Federal AGIs between $75,000 and $99,000 of couples over age 65 begin to lose this age-based special treatment and lose the tax savings they had at lower income levels.

Even the most Roth-loving individuals may have hidden Traditional assets that they do not know they can convert to Roth. Here are just a few places to look.

Be brave. Fund your Roth. Convert your IRA. Pay your tax bill. Your future self will thank you.

Luckily for Roth lovers like us, you don’t have to choose between Roth conversions or Roth contributions.

“A conventional wisdom withdrawal strategy will almost always leave a lot of money on the table.”

Putting money in your Roth without delay is valuable.

To avoid the 10% penalty, do I have to satisfy the 5-year holding period for my Roth conversions if I’m over age 59 1/2? The IRS is not very clear when it comes to when you need to pay penalties on Roth IRA withdrawals, but I think I know the answer.

I have learned there are so many more wise plans than just “top of the bracket” conversions.

The legal answer to this question is: there is no limit. The practical answer is: it depends on a number of things.

A simple summary of how to meet your Required Minimum Distribution in the same year as you perform a Roth Conversion is the axiom: RMD dollars must come out first.

If you don’t have retirement savings in Roth IRAs, it’s time you considered their benefits. Assets in traditional IRAs can be rolled into Roth IRAs without a withdrawal penalty.

We develop a personalized Roth conversion plan and revisit it every year.

The Internal Revenue Service (IRS) is notorious for misunderstanding the recharacterizations of Roth conversions.

Any tax which is ultimately going to be owed is owed by April 15th. Otherwise it may be subject to interest and penalties.

My wife and I are 65 years old and I am newly retired. Is there any advantage in doing a Roth conversion this year?

Roth conversions are a great way to save money and if you have a good financial planner, they need not be a headache.

While Roth conversions will be advantageous for some next year, they are advantageous for nearly everyone in 2012.

David John Marotta presents how to use Roth conversions, segregations and recharacterizations to put the most money where it will never be taxed again in the most tax efficient manner.

Nearly everyone is an excellent candidate for a Roth conversion this year. You can always undo part or all of a Roth conversion with what’s called a recharacterization, so you can’t convert too much.

Nearly everyone is an excellent candidate for executing a Roth conversion this year. But it is helpful to have a target amount in mind before you begin.

A tax tsunami is coming at the end of this year. This will be your last opportunity to safeguard your assets in a lifeboat and avoid getting swamped with taxes.

There are three IRA tax requirements and saving techniques which collided recently for a client. I found a solution.

David Marotta discusses converting your traditional IRA balance to Roth IRAs this year before tax rates go back up.

It is time to drive a Brink’s truck through the legal loophole of Roth conversions this year.

You are a good candidate for a Roth conversion in 2010 if you expect your tax bill to be higher in the future.

There are years and situations when a Roth conversion is not appropriate, but they are often surrounded by years when it should be considered.