Is ROTH IRA conversion right for me san jose california 408 854-1883


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Is ROTH IRA conversion right for me san jose california 408 854-1883

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Is ROTH IRA conversion right for me san jose california 408 854-1883

  1. 1. Roth ConversionIn recent, Roth IRA conversions have garnered the attention ofnational media and investors, alike. But, why is everyone talkingabout conversions? Prior to 2010, only taxpayers whose modifiedadjusted gross income was under $100,000 were allowed to converta traditional IRA to a Roth IRA. Beginning in 2010, all taxpayers—regardless of income level or tax-filing status—have the opportunityto convert any or all of the funds from a traditional IRA to a RothIRA with absolutely no limit on the amount that can be converted.With tax-free earnings and distributions, a Roth IRA is a great wayto prepare for a tax-free retirement.There are many advantages to converting to a Roth IRA. • Tax-free qualified distributions • Tax-free growth of earnings • Eliminate uncertainty about future tax rates • Lower taxes owed on retirement benefits like Social Security • No minimum distribution requirements • Provide a greater financial legacy to your heirsWhile you will have to pay taxes on the amount you convert, payingtaxes now could be offset by significant gains later. Switching yourtraditional IRA to a Roth IRA means you pay no tax on thedistributions in future years.
  2. 2. Let our team of CPAs and tax professionals analyze your qualifiedplan holdings and help to answer the all-important question “Is aRoth Conversion Right for Me?” We will walk you through theprocess, assuring you the conversion is done correctly and done inthe most cost-effective manner possible to help ensure your financialfuture.LIMITED TIME! 2010 Roth IRA OpportunityFor conversions made in 2010 only, you can opt to have none of theconverted funds taxed for 2010. Instead, the conversion amount maybe split over the following two years so that half the convertedamount is taxed in 2011 and the other half in 2012. It’s important tounderstand that you’re not actually splitting the tax over two years;you’re splitting the conversion amount as if it were income over twoyears.For example, let’s say you convert $100,000 from a traditional IRAto a Roth IRA. If you had to claim the entire amount on your 2010tax return, you conceivably could be pushed into a higher taxbracket. However, splitting the income—$50,000 in 2011 and$50,000 in 2012—could keep you in a lower tax bracket and saveyou money. However, it is not always beneficial to spread thisincome recognition over two years.Contact Connie for List of CPA, Tax advisors and Living Trusts Lawyers inthe bayareaConnie Dello Buono , Financial Representative1708 Hallmark Lane San Jose California 95124CA Life Ins Lic