{"id":510,"date":"2009-11-11T22:45:13","date_gmt":"2009-11-12T05:45:13","guid":{"rendered":"http:\/\/www.dbfwclegal.com\/?p=510"},"modified":"2017-12-01T16:26:41","modified_gmt":"2017-12-01T23:26:41","slug":"forever-never-retirement-accounts","status":"publish","type":"post","link":"https:\/\/www.dbfwclegal.com\/forever-never-retirement-accounts\/","title":{"rendered":"Forever To Never Retirement Accounts"},"content":{"rendered":"

Does never paying income tax on your retirement income sound too good to be true?\u00a0 Well believe it, because on or after January 4, 2010, anyone can convert their traditional IRA to a Roth IRA, pay the taxes in 2 installments in October 2011 and October 2012 and never again pay income tax on any amount ever withdrawn from the account.<\/p>\n

Should you do it?\u00a0 Kiplinger\u2019s<\/a> explains the benefits of the Roth IRA.\u00a0 With stocks down from historical highs and tax rates at all time historical lows, now is the best time to convert to this long term investment strategy.\u00a0 Read Kiplinger\u2019s explanation of when to switch<\/a>.<\/p>\n

Before 2010, high earners were prohibited from establishing or converting to a Roth account, but no more.\u00a0 And for 1 year only, the tax can be paid in 2 installments, stretching the due date on half of the taxes due until the extended due date of their 2011 tax return!<\/p>\n

But wait, there\u2019s more information that hasn\u2019t been widely disseminated!\u00a0 If the value of the account goes down before the extended due date on the 2010 return, you can reconvert back to a traditional IRA, pay no tax until the money is withdrawn and then convert the lower amount back to a Roth account the following year.<\/p>\n

If you believe the value of the stretch out over your lifetime outweighs the benefit of paying the tax over 2 years, 22 and 34 months after you\u2019ve converted, think about this \u2013 If your tax and financial advisors haven\u2019t told you (1) about this opportunity and that (2) income taxes are at an all time historically low rate and headed nowhere but up, you should ask.<\/p>\n

Because of the unique features of Roth IRAs, no minimum required distributions during your lifetime, MRD for your beneficiary, no taxes on any of the money withdrawn from the account, you have a once in a lifetime opportunity to make a tax decision that will benefit you, your spouse, and your descendants by protecting your nest egg from ever being subject to income tax again.\u00a0 And by paying the tax in advance at the lowest historical rates, you are also reducing potential estate taxes.<\/p>\n

With all of these benefits, shouldn\u2019t you at least be considering a Roth IRA?<\/p>\n<\/div>

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