Are You Converted?
A Roth conversion allows for the conversion of assets from the tax-deferred environment of an IRA or 401(k) to the tax-free environment of a Roth IRA.
Roth conversion highlights:.
Roth assets appreciate tax-free! Would you rather pay taxes on the seed or the harvest?
There are no income restrictions limiting Roth conversion eligibility. Everyone is eligible to Roth convert (including high income earners).
- You are not required to Roth convert 100%. You may elect to Roth convert a portion of your IRA or 401(k) annually.
In-kind Roth conversions allow for the conversion of assets like notes, real property, and LLCs without liquidating. In-kind conversions require a fair market valuation by a certified appraiser.
- In the event that you cannot afford the conversion taxes you may re-characterize the converted amount by your tax filing deadline.
- NOTE: A Roth Conversion is a taxable event, please consult with your tax professionals.