I am Richard A. Sarner of Zeldes, Needle & Cooper, P.C., and I am in the business of helping people plan for their futures. I have dedicated my practice to maximizing my clients’ freedom to use and distribute their assets as they direct, and that includes in retirement. For certain high-asset individuals and couples, new rules for IRA-Roth conversions offer an opportunity to rebalance their retirement plans in a way that could have highly beneficial tax effects.
I work closely with clients’ financial planners to develop well-diversified retirement plans, which may include 401(k) accounts and traditional or Roth IRAs. To discuss your situation with an attorney, contact me today and schedule an appointment at my offices in Stamford, Connecticut, or New York City.
The new rule, which took effect on January 1, 2010, allows many individuals and couples who did not previously qualify to convert assets currently held in traditional IRAs or 401(k) accounts into Roth IRAs. Because these three types of retirement accounts are treated differently in taxation, the ability to convert these accounts could offer an extremely advantageous investment diversification opportunity for many people with higher incomes.
Just as the type of investments you hold needs to be diversified, the tax treatment of those investments should also be structured optimally. Because income pulled from a Roth IRA receives different tax treatment than withdrawals from traditional IRAs or 401(k) accounts, it is an important tool for tax diversification.
In the past, federal rules restricted those with higher incomes from converting their traditional IRAs and 401(k) plans through former employers into Roth IRAs. Unfortunately, this meant that they could not adjust their tax diversification easily by converting their accounts.
As of January 1, 2010 all taxpayers can convert these accounts into Roth IRAs, and the income taxes on the conversion can be spread over two years. The tax treatment makes this an especially valuable opportunity.
With more than more than 25 years of legal experience, I am committed to helping clients maximize and diversify their retirement savings. Working in conjunction with your tax advisor, I will strategically convert a portion of your existing 401(k) and traditional IRA accounts to Roth IRAs. My top priority is enabling you to maximize your opportunities under the new rule while minimizing cost and taxation.
I am a member of WealthCounsel and the Wealth Strategies Collaborative®, which provides me with access to sophisticated planning resources. I write and lecture widely on estate planning and wealth preservation and am AV Peer Review Rated* through Martindale-Hubbell and listed in Martindale-Hubbell’s Bar Register of Preeminent Lawyers.™
If you could benefit from the new rules for IRAs, Roth conversion could be a substantial advantage to the tax treatment of your retirement accounts. Contact me today to discuss how the Roth IRA conversion could benefit you.