A Common Roth Conversion Mistake
Avoid withholding during Roth conversions if you’re under 59 ½ to prevent a 10% penalty on any mismatch between the converted amount and withheld taxes.
January 20, 2021
Avoid withholding during Roth conversions if you’re under 59 ½ to prevent a 10% penalty on any mismatch between the converted amount and withheld taxes.
Before initiating Roth conversions, ensure you can answer “YES” to all three essential questions, and if not, focus on accumulating cash, which serves as your conversion fuel.
In our daily schedules, there’s a crucial “Magic Window” where we decide our priorities. If you’d rather not handle financial complexities during this time, hiring a planner can streamline your journey and save you time.
While simplicity suffices in the beginning, a financial planner can offer clarity and guidance as complexities arise, saving time and reducing stress.
If you foresee higher taxes in the future and have most assets in pre-tax retirement plans, transitioning to tax-free investment vehicles is crucial—act now to devise a plan.
What can you gain from working with a financial planner, what are you missing?
A financial plan is like a roadmap, guiding you from where you are to where you want to be, aligning your goals with actionable steps for an optimal journey.
What to look for in a comprehensive financial plan.
Having a home equity line of credit (HELOC) ready before it’s needed is crucial, as waiting until a job loss or retirement can complicate approval, and moving homes may impact eligibility.
Shift your focus from short-term fluctuations in account value to accumulating shares of top-performing companies for long-term growth.
Focus on building your financial independence fuel by maximizing your income potential, as it offers greater opportunities for growth compared to solely reducing expenses.
To maximize the benefits of converting your IRA to a Roth, consider aligning your conversions with your current tax bracket.
11215 N. Community House Rd.
Woodward Building – Suite 775
Charlotte, NC 28277
We serve clients in our Charlotte, North Carolina office and virtually throughout the country.
Client stories, answers to your questions, and market guidance delivered every Saturday morning at 9am!
Securities are offered through LPL Financial, Member FINRA/SIPC. Know My Plan is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser.
Independent Advisor Alliance, LLC is a separate entity from LPL Financial. The LPL Financial representatives associated with this page may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted by residents of any other state.