Do you have a tax-deferred IRA or a work retirement plan, such as a 401k or 403b?
Did you know that your support of Pacific Crest may help you take advantage of one of today’s most desired tax strategies. Would you like to use your support of Pacific Crest this year to benefit yourself financially for years or decades to come? Read on!
The American Taxpayer Relief Act of 2012 made two changes that dramatically increased interest in the Traditional-to-Roth IRA conversion. This process allows you to turn all or part of your existing tax-deferred retirement account into a tax-free IRA, and the 2012 Act made the benefit available to more taxpayers than ever before.
With benefits like tax-free retirement withdrawals, no Required Minimum Distributions at age 70 1/2, and the ability to pass retirement assets income-tax free to heirs, the Roth conversion is widely desired by investors, regardless of the size of their accounts.
The converted amount is included in your
taxable income in the year of conversion.
To maximize the benefit of the Roth conversion there are two ways to address the tax due in the year of conversion: either pay the tax with non-IRA dollars, or make a charitable contribution in the amount of the conversion.
For every dollar you contribute to Pacific Crest, you can convert a dollar tax free to a Roth IRA.
If you’re interested in learning more about how you can benefit yourself and supporting Pacific Crest by doing a Roth IRA Conversion, talk with your financial and tax advisors.
If you don’t have an advisor, contact us at firstname.lastname@example.org! We have financial professionals who support our organization and who will offer you a free illustration of how a Roth IRA Conversion would work for you, personally.