2009′s estate tax rate was 45%, and…
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.
Roth IRA’s allow for a two (2) generation tax-free stretch on distributions.
Meaning distributions for you and your beneficiaries are tax-free.
If you’re a 401(k) plan owner, be sure to…
…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.
No matter how many IRAs you own…
the IRS views them as one pool of assets for tax purposes.
Enacted on March 18, 2010, the Hiring Incentives to Restore Employment (HIRE) Act has two new tax benefits that are available to employees who hire certain previously unemployed workers (“qualified employees”).
Payroll Tax Forgiveness for Hiring Unemployed Workers:
Having options is the key to making the right decision at the right time.
Creating “Roth assets” today, by conversion or yearly contributions, will provide you options in retirement.
Did you know?
You are not required to convert your traditional IRA(s), SEP(s) and SIMPLE(s) into one Roth IRA.
If you switch to a Roth IRA early in 2010…
…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 –
If you’re a small business owner, here are 7 very important things…
Everything I discuss is also available in eBook form on my Web Site at: www.Makara-Assoc.com.
…you need to know:
