With the passage of the TCJA, Roth IRA conversions have once again become popular. While many professional advisors know about the basic rules of Roth IRAs, they do not understand the economic/tax intricacies associated with them. Unfortunately, failure to understand the mathematical fundamentals of Roth IRA conversions can lead to making disastrous decisions. However, with a good working knowledge of the quantitative “forces” which impact Roth IRA conversions, professional advisors will be able to give cogent, straightforward advice to their clients.
1. Reasons to convert to a Roth IRA
2. Taxation of Roth IRA conversions
3. Taxation of Roth IRA distributions
4. Mathematics of Roth IRA conversions
6. Estate tax considerations
7. “Stretch” Roth IRAs • Using insurance to preserve post-death “stretch-out”
8. Tax-sensitive withdrawal strategies