Get FREE feedback from one of our expert advisors! Claim your free portfolio review.
Our Roth IRA advisors can help you with a successful backdoor Roth IRA strategy that limits your tax bill. Roth IRA conversions are also a great estate planning tool to help you pass on the benefits to your beneficiaries.
CLAIM MY FREE PORTFOLIO REVIEW
A Roth IRA conversion may be right for you if your income is too high to contribute to a Roth IRA outright ($140,000 and up for individuals in 2021; $208,000 and up for married couples filing jointly). Don’t let these income limits hinder you from the advantages of a Roth IRA account. With this Roth conversion strategy, you convert all or part of your traditional IRA to a Roth IRA and pay regular income taxes on the converted amount.
It may seem counterintuitive to pay taxes now that you could put off until later, but doing so will allow you to take advantage of a Roth IRA’s main benefit: tax-free withdrawals of contributions and earnings in retirement (so long as you’re age 59½ or older and have held the account for at least five years).
“It’s an attractive option for individuals who believe their tax rate may be higher in retirement, or for those who just want the flexibility that tax-free income provides,” says Rob Williams, managing director of financial planning at the Schwab Center for Financial Research. “And, unlike tax-deferred retirement accounts, Roth IRAs aren’t subject to required minimum distributions beginning at age 72.”
.png)
As Seen or Heard On
.svg){kind=logo}
%201.png)
.svg%201.png){kind=logo}
In any case, you may want to wait until the end of the year to perform the Roth IRA conversion. “That way, you can account for any year-end changes to your total taxable income,” Rob says.
There are other benefits when you change an IRA to a Roth IRA. Our Roth IRA advisors can help you with a successful backdoor Roth IRA strategy that limits your tax bill. Roth IRA conversions allow extended tax-free growth because they don’t have RMDs. Roth IRA conversions can maximize the advantages of compound interest and allow tax-free growth for a longer duration.
Roth conversion tax strategies can also help you to take advantage of Roth’s flexible withdrawals as you can withdraw contributions without penalty. Roth IRA conversions are also a great estate planning tool to help you pass on the benefits to your beneficiaries.
We work with industry-leading financial products like Fidelity IRAs for Roth conversions. A Fidelity Roth IRA conversion can help you save more in the future.
If you think a Roth IRA conversion might be right for you, Rob points to three tax-efficient strategies:
Each of our advisors is a fiduciary obligated to protect your best interests. Your portfolio reaps the benefits.
We offer that on a fee-only basis. Either way, we provide financial advisement and planning services that leave you with more in your wallet.
We take a communicative and collaborative approach to our wealth management & retirement planning services — we’re experts that care.
My husband and I have been with Asset Preservation since 2015. We met Stewart Willis at one of his workshops and he showed us how to manage our money. Because of his advice, we were able to travel more and retire with no worries.
See all google reviews
Get a complimentary portfolio review and get feedback from one of our expert advisors
Make your future one worth dreaming about. Call one of our financial advisors in Phoenix today to learn more about our family financial planning services. When you achieve your goals, we achieve our goals.
Our local financial planners aren’t just here to manage your assets. Our goal is to help you build a stable financial future with what you have. Our firm gives you a full view of every aspect of high-net-worth financial planning, including tax planning.
© APSITaxes.com. All Rights Reserved. | Investment Advisory services offered through Foundations Investment Advisors, an SEC Registered Investment Adviser. Privacy Policy.
