Roth IRAs: Conversions, Mega Back-Door, Tax Calculations, and Recent Legislation

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, November 3, 2022

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Course Materials

This course will discuss Roth IRAs and Roth conversions for tax advisers working with clients eligible to make IRA contributions, conversions, and withdrawals. The panelist will discuss determining taxpayers who benefit most from conversions, calculating the tax on a Roth conversion, and--most importantly--how to avoid tax surprises when affecting these conversions.

Description

Roth IRAs certainly have advantages, such as no required minimum distributions, and beneficiaries will receive the Roth IRA tax-free. There may be new tax legislation that could change the way we plan for retirement assets. There are proposals to change the deduction for retirement plan contributions, making Roths much more valuable.

The webinar will review the impact of a Roth conversion on other tax aspects such as the QBI deduction, Social Security taxation, Medicare premiums, AMT, capital gains taxes, and NIIT. Many taxpayers have been circumventing the AGI limitation on Roth IRA contributions with the Back-Door Roth. Still, many eligible taxpayers are not taking advantage of the Mega Back-Door Roth.

Our presenter will show how your client can put away up to $37,500 into a Roth. As a bonus, he will also review net unrealized appreciation (NUA) and how taking advantage of NUA can reduce your client's tax bills.

Listen as Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP of Pon & Associates, explains how Roth IRAs can be used to save substantial tax, recent legislation affecting these retirement planning vehicles, and how to avoid unexpected tax consequences during conversions.

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Outline

  1. Eligibility
  2. Roths compared to traditional IRAs
  3. Recent legislation affecting IRAs
  4. Back-Door Roths
  5. Mega Back-Door Roths
  6. Traditional IRA conversions
  7. Planning opportunities

Benefits

The panelist will review these and other key issues:

  • Tax traps to consider before recommending Roth conversions
  • Calculating the tax due on a Roth conversion
  • Making a back-door and mega back-door conversion
  • Changes made by the SECURE Act, CARES Act, and recent legislation to IRAs

Faculty

Pon, Lawrence
Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP
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Pon & Associates

Mr. Pon has been in practice since 1986 providing comprehensive tax and financial planning, tax preparation and...  |  Read More

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