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08/02/2023

Secure Act: Is Now the Time to Convert to a Roth IRA?

Roth IRA conversions a hot topic this year, and while converting from a Traditional IRA to a Roth is often beneficial, there are a lot of things to consider.


Why?


Changes in the Secure Act transformed the retirement landscape and have many people trying to maximize their Roth accounts to grow their money tax-free. What changes are the most important for you to know about? 


In our recent article, we discuss:


Questions on the Secure Act’s Impact on Roth IRA Accounts


  • Did Roth IRAs change under the Secure Act? Yes. One major change is the elimination of stretch IRAs that allowed account holders to shield inherited income and even extend tax deferment so that money could continue to grow tax-free.


  • Are Roth conversions going away? No one knows for sure. It’s quite possible for the prohibition of converting after-tax money to begin in 2023.. As of today, the law permits backdoor Roth IRA contributions. 


  • Why is now a popular time to make a Roth conversation? Taxes are set to increase in 2026. Congress may change the tax ramifications before this date, but if they don’t, expect to pay more money on taxes when you move money from a traditional IRA.


  • Do you need to take required minimum distributions (RMDs)? We discuss this topic in great detail and clarify one of the most important questions regarding when distributions must be taken out of an account to avoid severe penalties.


The Secure Act does change the retirement landscape, but if you take the right approach today, you can save your clients money by reducing their tax burden when they retire or leave their accounts to beneficiaries.


Read the full article here where we discuss the impact of the Secure Act on Roth IRA accounts.


To learn more how FFP can help you with Roth IRA conversions or to schedule a call, contact us here. 


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