Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

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.

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


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.

2 Responses

  1. Ed Stellfox Says:

    Great post I am definitly bookmarking this. Thanks for the resource.

    Posted on July 1st, 2010 at 1:51 pm

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