Roth IRA – Manage or Improve Your “8606 Ratio”
No matter how many IRAs you own…
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.
