You’ve probably heard friends, family, or financial advisors talk about ROTH IRA conversion strategies. “Back door” conversions are always a hot topic at tax time, too. Ever wondered what it all means?
Here’s a quick 5-minute overview from our friend and financial advisor, Michael Gluski of Ameriprise, on Roth IRA Conversions. (In a later blog post, we’ll cover the differences between a ROTH IRA and a Traditional IRA.)
Remember – you should ALWAYS check in with your CPA about a conversion before you do it. Some years may be better than others for a conversion from a tax perspective. Your financial advisor can’t give you tax advice (he is legally prohibited from doing so). Every year, we have a handful of clients who undertake withdrawals and conversions from retirement accounts with no clue as to the tax consequences. They are often horrified – and completely unprepared – for the tax consequences.
There is no reason to be a victim of bad advice! So contact us if you’re thinking about it. We can help! 🙂