Understand the rules regarding Roth IRAs and Roth 401(k)s and why they should be part of your strategy.
Developing an effective retirement plan to meet individual savings objectives is complicated. Different rules apply to different types of plans and accounts, and these rules are frequently confused and misunderstood by clients and advisors, causing unexpected or negative consequences. Understanding the advantages Roth accounts have in retirement planning strategy is important, yet it is often overlooked because of the confusion and complexity. This course will help you understand the rules regarding Roth IRAs and Roth 401(k)s and why they should be part of your strategy. Learn how to determine who can contribute directly to Roth accounts and who needs to look for backdoor solutions. This material will also help you identify pitfalls that could jeopardize a tax-free conversion, help you ask the right questions, and provide the right advice regarding the taxable portion of a conversion. In addition to exploring the rules regarding getting money into Roth accounts, we will explore the why and identify the ideal candidates for Roth investments.Learning Objectives
- You will be able to describe the tax consequences of distributions from traditional and Roth accounts and RMD requirements for each type of account.
- You will be able to discuss the impact other retirement accounts have on a Roth conversion.
- You will be able to explain how to calculate the taxable portion of a Roth conversion.
- You will be able to recognize opportunities where Roth accounts may the best choice.
Agenda
Traditional vs. Roth Retirement Savings- Who Is Eligible to Make Traditional IRA Contributions?
- Who Is Eligible to Make Roth IRA Contributions?
- Who Is Eligible to Make Roth Contributions to an Employer-Sponsored Plan?
- Taxation of Roth Distributions - Qualified Distributions and the Roth Clock
- What Is a Roth IRA Conversion?
- Who Is Eligible to Do a Roth IRA Conversion?
- Calculation of Basis in IRA Accounts
- Backdoor Roth IRA Contributions
- Recharacterization
- Identification of IRA Accounts to Determine Possible Taxation of Conversion
- Rollover Techniques to Eliminate Taxable IRA Accounts
- In Plan Roth Conversions the Mechanics
- Tax Consequences
- Mega Backdoor Roth 401(K) Contributions
- Identify Idea Candidates for Roth Accounts
- Looking Beyond the Marginal Tax Rate
- Roth Accounts in Estate Planning
Speaker(s)
Mary Mlock, CPABST
- Partner in charge of BST Retirement Services with 30 years of experience
- Focuses practice on employee benefits, and expertise includes design, implementation consulting, and administration of defined contribution plans and other employee benefit plans
- Member of the American Institute of Certified Public Accountants and the New York State Society of Certified Public Accountants
- Bachelor’s degree in business administration, Siena College
