- Brian P. Werner, CPA
Roth IRA conversions done right
"My financial adviser told me to go ahead and do a Roth IRA conversion and it has already been completed." I hear this a lot in my line of work and my first question always is "Did your financial adviser instruct you to check with a CPA on what the tax implications of this transaction will be first?" Most of the time the answer is NO!
A message to all financial advisers for the benefit of your clients - make sure you coordinate with a CPA before you embark on recommending a Roth IRA conversion. There is a right way to do a Roth IRA conversion and everyone's situation is unique. The amount of tax savings to a taxpayer may be significant by making sure we are not pushing income into a higher tax bracket or losing valuable tax credits. Do we expect a lower income year in the near future? Spreading the Roth IRA conversion over many years may make sense as well. I can perform this analysis and save you a tremendous amount of taxes,
There are a multiple of factors that need to be considered before converting your Traditional IRA funds to a Roth IRA, Contact me before you cost yourself boat loads of cash!