Tax Free Retirement Planning

Roth Conversion

Recently, 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 taxpayers—regardless of income level or tax-filing status—have 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.

Let our team of CPAs and tax professionals analyze your qualified plan holdings and help to answer the all-important question “Is a Roth Conversion Right for Me?” 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.

Have questions? Contact us or call 855-872-8593.

Adagio Capital Advisors is based in Southwest Florida.