罗斯个人退休账户的好处可能是众所周知的, but the IRS typically limits participation to low and moderate-income workers. The IRS eligibility for contributions to a Roth is currently a maximum income level of $144,000美元的单一申报者. This prohibits many Americans from directly participating in a Roth IRA.
然而, there are a few ways around this income threshold, and we recently wrote about a popular one: the ability for higher earners and business owners to contribute to their employer sponsored retirement plan e.g., a 401(k) plan, provided it offers a Roth IRA provision. 阅读全文， Roth Strategies For High Earners And 业务 Owners.
Another method is to complete a Roth conversion by taking money out of a (pre-tax) IRA and converting it to a Roth IRA where all the future gains, 但要符合国税局的一些规定, 可以免税. 这样做意味着声明, 随着收入, 从税前个人退休账户中提取的任何金额, and making it subject to income tax prior to it being invested in the Roth IRA.
现在缴纳所得税, with the hope of having tax-free gains later, is especially attractive for a younger person or for someone who will retire in a higher tax bracket. Note: you can convert the entire amount of the IRA and pay taxes with funds held elsewhere. 每个人的情况都是独一无二的, but this is often a suggested course of action provided other funds are available for liquidity needs, 等. Also note that the conversion could actually raise your marginal income tax rate, 所以一定要监控它.
There have been many articles written about Roth conversions, so why is now a good time to (re)consider a Roth conversion? The answer is because the recent market sell-off has reduced or removed one of the barriers to a Roth conversion, and that is the risk that a conversion occurs shortly before a market decline.
几年前, an investor could ‘re-characterize’ a Roth conversion basically giving the investor a ‘do-over’. A re-characterization allowed an investor to reverse or unwind the Roth conversion in the event, 例如, 股票市场下跌。. 而是重新塑造的能力 12月31日失踪, 2017, so once an investor moves money from a pre-tax IRA to a Roth, the investor is subject to income tax on the full, 转换后的金额. 在罗斯转换之后, if the investment portfolio subsequently reduces, the investor pays tax on a higher amount rather than the current portfolio value. 这不是一个理想的情况.
When the stock market was on its virtual unending run upwards, it created a hesitancy among some investors (and this advisor) to convert an IRA and pay tax on what may have been a bloated asset level. While the risk of further market and portfolio losses continues, the recent 20% +/- drop in the NASDAQ 例如, may be providing a more favorable entry point for a Roth conversion. It is certainly a better time for most stock investors than it was 6 months ago when asset levels were considerable higher.
对于那些看好股市的人来说, and who have been waiting for a more favorable point in time to convert an IRA, 你的时间可能到了.
This opportunity may not just be for young people. Older investors who are looking at a similar, or potentially higher tax bracket in retirement, may want to consider capitalizing on this opportunity provided they won’t need to access these funds for +/- 10 years or more depending on their overall situation.
For those looking for a silver lining to the recent stock (and bond) market carnage, completing a Roth conversion may help save tax pain later.
Each situation is unique and potentially complicated, 特别是考虑到市场回报, 税率, 未来的收入水平也不得而知. There are also rules and other calculations to consider before completing a Roth conversion, so please carefully consider all factors and talk with your tax advisor before taking any action.
