Is ROTH IRA conversion right for me san jose california 408 854-1883
1. Roth Conversion
In recent, Roth IRA conversions have garnered the attention of
national media and investors, alike. But, why is everyone talking
about conversions? Prior to 2010, only taxpayers whose modified
adjusted gross income was under $100,000 were allowed to convert
a traditional IRA to a Roth IRA. Beginning in 2010, all taxpayersâ
regardless of income level or tax-filing statusâhave the opportunity
to convert any or all of the funds from a traditional IRA to a Roth
IRA with absolutely no limit on the amount that can be converted.
With tax-free earnings and distributions, a Roth IRA is a great way
to 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 heirs
While you will have to pay taxes on the amount you convert, paying
taxes now could be offset by significant gains later. Switching your
traditional IRA to a Roth IRA means you pay no tax on the
distributions in future years.
2. Let our team of CPAs and tax professionals analyze your qualified
plan holdings and help to answer the all-important question âIs a
Roth Conversion Right for Me?â We will walk you through the
process, assuring you the conversion is done correctly and done in
the most cost-effective manner possible to help ensure your financial
future.
LIMITED TIME! 2010 Roth IRA Opportunity
For conversions made in 2010 only, you can opt to have none of the
converted funds taxed for 2010. Instead, the conversion amount may
be split over the following two years so that half the converted
amount is taxed in 2011 and the other half in 2012. Itâs important to
understand that youâre not actually splitting the tax over two years;
youâre splitting the conversion amount as if it were income over two
years.
For example, letâs say you convert $100,000 from a traditional IRA
to a Roth IRA. If you had to claim the entire amount on your 2010
tax return, you conceivably could be pushed into a higher tax
bracket. However, splitting the incomeâ$50,000 in 2011 and
$50,000 in 2012âcould keep you in a lower tax bracket and save
you money. However, it is not always beneficial to spread this
income recognition over two years.
Contact Connie for List of CPA, Tax advisors and Living Trusts Lawyers in
the bayarea
Connie Dello Buono , Financial Representative
1708 Hallmark Lane San Jose California 95124
CA Life Ins Lic 0G60621
www.gradientfg.com
408-854-1883
motherhealth@gmail.com