Heads UP!

April 25th, 2013

When is the best time to convert some or all of your IRA to a Roth IRA(be mindful the growth of a Roth IRA is tax free if you meet fairly easy IRS requirements and Roth IRA’s have no Required Minimum Distribution)?

The answer for most is straightforward – convert your IRA to a Roth IRA when your income tax rate is low. Here are several situations where Valley National has aggressively recommended a conversion of an IRA to a Roth IRA:

The taxpayer suffered a business loss or casualty loss during the year, thus reducing their income. The taxpayer incurred unusually large medical bills, charitable contributions, or other itemized deductions. The taxpayer retired at age 59, 60, or 61 and their income dropped and their Social Security had not yet started.

If one of the above fits your circumstance, please contact me at your earliest convenience to discuss further.

NOTE: The information is general and not meant as a recommendation for your unique circumstances. Tax laws are tricky and the smallest deviation could result in a different recommendation. Contact your advisor at Valley National before proceeding.

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