This document discusses the benefits of a Roth IRA conversion. It notes that individuals age 50+ have a higher contribution limit and catch-up provision for Roth IRAs. It provides an example of a 50-year-old with a $500,000 traditional IRA who could convert $100,000 in 2012 at a 25% tax rate, or $89,286 in 2013 at a 28% rate. It recommends keeping converted funds in accounts if they increase 17.9% or more to outweigh the taxes paid. The document promotes comprehensive wealth management services.

1. Last Chance for a
Roth Conversion
David John Marotta
President
Marotta Wealth Management
www.emarotta.com

2. Comprehensive
Wealth Mangement

3. Taxes

4. Age 50+
$5,000 $6,000
Contribution Catch-up
Limit Provision

5. Traditional
Contributions Withdrawals
IRA
RMD
Nondeductible
Contributions IRA Withdrawals
Roth
Contributions Withdrawals
IRA

8. Traditional
IRA
Conversion
Roth
IRA

9. Apr
Jan

10. Traditional
IRA
Recharacterization
Conversion
Roth
IRA

11. Oct
Apr
Jan

12. Taxes

16. John, 50 years old
$75,000 taxable income
$500,000 traditional IRA
25% 2012 rate
28% 2013 rate

18. 25% 2012 rate
$100,000 Conversion
$25,000 taxes
28% 2013 rate
$89,286 (-10.7%)
$25,000 taxes

21. $75,000 income
$67,700 at 25%
$74,750 at 28%
$217,450 total
$170,900 at 31%
should be kept if
accounts are up
17.9% or more
$388,350 total
$313,350 conversion

23. Oct
Apr
Jan

24. Asset Allocation

25. Asset Allocation

27. $ Oct
Apr
Jan

30. $ Oct
Apr
Jan

33. Comprehensive Wealth Management
with a Trusted Fiduciary Advisor

34. Last Chance for a
Roth Conversion
David John Marotta
President
Marotta Wealth Management
www.emarotta.com