New Tax Provisions for Roth IRA Conversions


Who should look at a Roth IRA Conversion?

Perhaps you should take a look at the benefits of converting some or all of a regular IRA into a Roth, particularly if you’re a married minister or in a high or low tax bracket.  Many ministers in the 0% tax bracket don’t realize they are because of their housing allowance. These people definitely meet some of the criteria to consider a Roth conversion.

However, you can’t automatically disqualify yourself if you fall into the middle ( 10-15% ) tax brackets either.  Don’t believe you’re too young or too old for this strategy to work for you.  For many, but not all ministers, the best time to consider this strategy is when housing espenses are highest.

Your state tax and estate plan need to be taken into account, as well as,  the cost and possible tax ramifications for the year of the coversion and a myriad of other factors.  It’s not as simple a calculation as one would hope.   Most people shouldn’t  try  to  figure this one out on their own.  The best way to determine and weigh all of the necessary factors is to evaluate your situation carefully with a qualified tax planner and financial advisor.  We’ll go deeper into the effects and criteria if you’d like  a personal evaluation. You can also learn more details of Roth IRA Conversions  in a free webinar to discover more about Who should convert and Why.