Guidance on Roth IRA Conversions 

With tax rates increasing in 2011 across the board coupled with the new 3.8% surtax that will be introduced in 2013, Roth conversion planning in 2010 becomes even more important. If it makes sense to convert, make sure to do so before rates jump to 43.4%. Take advantage of the many resources assembled here to assist in proper planning for your clients.

Rebirth of Roth Now Available FREE for PFP Members!
Bob Keebler and the PFP Section bring you The Rebirth of Roth: A CPA’s Ultimate Guide for Client Care. This important guide will bring you up to date on current rules and regulations, critical topics, and how to implement Roth conversions and recharacterizations into your planning. Written by a nationally recognized expert in retirement, estate, and family wealth preservation, The Rebirth of Roth is an over 200 page comprehensive guide designed to help the CPA financial planner stay up to date in today’s changed legal and economic environment. PFP members, inclusive of PFS credential holders, get full and free access to the electronic version of the guide on the PFP website. Download the pdf version of the book.

Additionally, PFP members receive a 20% discount off the price of the hardcopy version of the book. An accompanying CD-ROM is included with your purchase of the hard copy. This CD-ROM contains an MP3 file with further guidance from the author. Order a hard copy of this critical guide today.

A 2010 Update to the Rebirth of Roth: A CPA’s Ultimate Guide for Client Care, which covers provisions of The Tax Relief Act of 2010 that affect Roth IRA planning, is now available. Download the update today.

Other Roth conversion resources available to PFP members:

• The Simple Roth Conversion Calculator
  This calculator is meant to assist the advisor in determining whether performing a basic Roth conversion is an appropriate choice for a given client. It is designed to compare investment growth, given a specific set of assumptions, if the client chooses to convert to a Roth versus remaining in a Traditional IRA. Use this software to quickly analyze whether it makes sense for your clients to convert to a Roth and to illustrate to your clients the varying tax impact when converting in years with higher tax rates. Make sure to input the factors that represent your client’s unique situation.
  Disclaimer: This calculator is not intended to make a recommendation as to whether a Roth conversion should be performed. Rather, the results of the computations are meant simply to assist an advisor in counseling his or her client on the suitability of a Roth conversion after the advisor takes into consideration all facts beyond those inputted into this program. This program should be viewed as only one tool to be utilized in the advisor’s tool box. Making the decision to convert is more than a mathematical or analytical question; it must be addressed holistically, taking into account a client's financial, retirement, income tax, and estate planning.
• The Roth IRA Conversion Decision Chart. This chart from Bob Keebler will walk you through whether your client should convert to a Roth IRA, as well as important tax, financial, estate and asset protection considerations.  
• Roth Education Series. Access all Roth-related recording and related materials in our web seminar library. Part 1 – The Basics (April 27^th), Part 2 – Estate, Trust, Insurance and Post Mortem Considerations (May 26^th)  and Part 3 – Recharacterizations In-Depth (June 29^th).
• Members who purchase the hardcopy version of Rebirth of Roth receive a 10% discount on the CCH Roth IRA Conversion Expert software. With this software tool, you can calculate and evaluate a variety of complex IRA conversion scenarios. Email your purchase confirmation to financialplanning@aicpa.org, at which point we will provide a discount code for the software.
• Medicare Surtax Chart. This chart highlights key reasons why this new surtax makes Roth conversion planning even more important.
• Affect of AMT on Roth Conversions. Bob Keebler has shared this calculator with PFP members to help demonstrate the AMT impact of Roth conversions.
• Traditional IRA Distribution Flowchart. Bob Keebler has shared this flowchart with PFP members to highlight traditional IRA distribution considerations.  

• Roth Quadrant Reference Chart: This handy, informative chart from Bob Keebler covers 8 aspects of Roth IRAs, including ordering rules, the seasoning rule, the penalty box rule, a Roth IRA distribution chart, trust distribution, Roth IRA beneficiary summary, Roth bypass trust chart, and four requirements for all trusts to qualify as a designated beneficiary.

• Download a PowerPoint presentation positioned for your clients .

• Read the November/December edition of Planner that includes guidance on Roth conversion issues.
• Read an article written by Bob Keebler in Steve Leimberg's Employee Benefits and Retirement Planning Newsletter "Conversion of 401(k), 403(b) and 457(b) Plans to Roth Accounts: Tax Free Benefits with ERISA Protection".