Make sure that you grab the “Roth IRA – 8 Quick, Helpful Tips” eBook from www.Makara-Assoc.com.

…that is right for you and your family.

Well you ‘ll want to learn about Roth IRA’s and exactly what they can do for you.

I’ve devised 8 very helpful tips that will help you understand exactly what a Roth IRA will do for you.

Tip 1 – Important Dates to Keep In Mind.

Tip 2 – Switch early, can you change your mind?

Tip 3 – Opening Multiple Accounts.

Tip 4 – Tax Diversification In Retirement.

Tip 5 – Manage or Improve Your “8606 Ratio.”

Tip 6 – Helpful Hint For 401(k) Plan Owners.

Tip 7 – Legacy Planning: A 2 Generation IRA Stretch.

Tip 8 – Estate Tax Rate vs. Income Tax Rate.

Theses 8 quick tips should help get you started on your own personal wealth plan.

If you have any questions, comments or concerns about Roth IRA’s, or if you think I can help you in any other way, contact me, or give me a call at (239) 384-9688.

- Mark

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This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

the 2009′s highest income tax rate was 35%, so:

If your estate was larger than the 2009 exemption amount of $3.5 million you may have been able to save 10% in estate taxes by converting to a Roth IRA.

This is a complex issue and should be reviewed with your legal and tax professional(s) but should not be over-looked when making the Roth conversion calculation decision.

As with any tax law change the financial news publications do a good job of giving the basic’s, however tax law changes always require digging deep into the law change to bring out the additional tax savings and long-term cash flow opportunities.

The Roth conversion is no different; this law change could be the biggest in your life-time.

The options are limitless and require you and your tax professional to stand back and review them all.

Some could affect your family’s finances 70, 80 or even 100 years for a Roth conversion completed in 2010, depending on your age.

Think of the tax-free compounding affect on any assets for that length of time, not to mention the other benefits mentioned above.

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

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This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

Meaning distributions for you and your beneficiaries are tax-free.

This will need to be reviewed with your legal and tax professional(s) as each individual situation will be different.

No required minimum distributions with Roth IRAs’ provide additional assets that can continue to grow tax-free after age 70 ½.

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other way, contact me, or give me a call at (239) 384-9688.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

…review your 401(k) plan(s), because some will allow distributions while you are still employed.

You can convert a distribution directly from a 401(k) into a Roth IRA, be sure not to overlook this option.

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

the IRS views them as one pool of assets for tax purposes.

If you elect to do a Roth conversion you must review, with your tax professional, your pre-tax dollars being held in your traditional IRA(s), SEP and SIMPLE plan(s) to reduce your tax liability.

Each conversion will have different outcomes, but ultimately your conversions tax liability will depend on your 8606 (tax form number to report conversions) ratio.

By increasing the percentage of after-tax dollars could lessen your tax liability.

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

Creating “Roth assets” today, by conversion or yearly contributions, will provide you options in retirement.

In retirement you will be able to manage your taxable income yearly by your options of receiving taxable or non-taxable income from retirement assets.

Keep in mind – this could mean the difference between a 15% tax rate and a 28% tax rate in retirement when extra cash will come in handy!

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

You are not required to convert your traditional IRA(s), SEP(s) and SIMPLE(s) into one Roth IRA.

If your assets are of size that will allow you to open multiple Roth accounts, use the different accounts for assets allocation, and then, as mentioned in my previous posts – review each account and re-characterize as necessary.

Creating more options for you today, will make any conversion a win today and into the future.

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

…you’re allowed the maximum benefit and still reserve the right to change your mind – by recharacterizing your Roth conversion.

Let’s walk through it –

Convert a $100,000 Traditional IRA to a Roth IRA in January 2010, in April 2011 review your account with your financial advisor.

Did the account increase or decrease in total value?

Also, where do you and your financial advisor see the market heading between April 2011 and October 2011?

One scenario:  In April 2011 account is up 10% or account value is $110,000 and you believe the market could retreat in the next 6 months, what to do?

First; you will decide on paying tax in 2010 or spread the tax due over 2011 and 2012 tax years.

Second; once this decision is made, you will need to decide whether to extend your 2010 tax return and wait until October 15, 2011 to file the return.  If you elect to pay the tax on the 2010 return and extend, compute the tax due on the conversion and pay it with the extension.  In early October 2011 review your account again with your financial advisor, if account is still positive (> $100,000) file your 2010 return.

If the account has turned negative (< $100,000) you can then re-characterize the Roth IRA back to a Traditional IRA, file your 2010 return and request your extension payment back.  Look to convert again in 2012.

There are a number of options you will have over that 21 month period (January 2010 and October 2011), review them all with your tax and financial advisor.

If you have any questions, comments or concerns about Roth IRA’s, or think I can help you in any other ways, contact me, or give me a call at (239) 384-9688.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

…but it’s how much of your those IRA(s) do you convert to a Roth IRA.

The deciding factor in this calculation – is how much cash, outside of the traditional IRA, is available to pay the tax that will become due in April 2011 or April 2012 and 2013.

With that in mind, below, and over my next series of blogs, are thoughts to consider beyond the headlines in the financial news publications that will save tax dollars and make your Roth conversion a win today and into the future.

Import Dates to keep in mind

January 1, 2010: First day to convert a Traditional IRA to a Roth IRA with no MAGI ($100,000 prior to January 1, 2010) limitation.

December 31, 2010:  Last day to take advantage of delaying taxes on Roth conversation in 2010 until 2011 and 2012.

April 15, 2011: Due date for 2010 tax return without an extension.

October 15, 2011:  Due date for 2010 tax return with an extension.  Last day to re-characterize a 2010 Roth conversion.

Do you have any questions, comments or concerns about Roth IRA’s?   If so, please contact me, or call me at (239) 384-9688, and I’ll be happy to answer them.

- Mark

———-

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this post is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.

…it’s potential benefits for you & your family.

In my next blog posts, I’ll be reviewing exactly what the Roth IRA is, and most importantly, how you can make the most of it.

If you want to get started on learning about the Roth IRA, be sure to visit IRA Online Resource Guide, provided by IRS.

If you have any questions about Roth IRA’s, Traditional IRA’s, or in a more general sense – Personal Wealth Planning, feel free to contact me, or give me a call at (239) 384-9688.

- Mark

————

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.