2019 Is The Year Of The Roth IRA
It's pay now or pay later. With most asset classes being down at the end of 2018 it makes sense to re evaluate whether a Roth Conversion is in the cards for 2019 and beyond. Let's have a brief refresher course for the moment. The difference between a Traditional IRA and a Roth IRA is a Traditional IRA is merely tax-deferred so taxes are due as distributions are made, whereas a Roth IRA grows tax free AND distributions are TAX-FREE (unless an exception applies). So be real and tell me who does not like tax free? If you considered Roth IRA conversions in the past and not acted on converting remember The Tax Cuts and Jobs Act (#TCJA) reduced income tax rates so if you think you will be in a higher tax bracket when you retire this is worth a looksy again.
The conversion strategy is to be considered on a year by year basis because facts and circumstances change from year to year. We fully understand paying taxes is not for the light-hearted however if you can pay less tax today then you would in the future why not. Best to consult a tax professional to analyze your situation. To learn more give us a call.
Jonathan Gassman CPA, CFP, CAP
The Gassman Financial Group & The Retirement Maven
9 East 40th Street
New York, NY 10016
T: 212-221-7067
DISCLAIMER: Any accounting, business, financial or tax advice contained in this communication, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. The opinions and analyses are subject to change at any time. If desired, The Gassman Financial Group including Gassman & Gassman CPA PC and G&G Planning Concepts Inc., would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired services. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.
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