Precision Tuning your Roth Conversions -
3.8% Surtax Requires Another Look at Roth Conversions
Presented by Robert Keebler, CPA, MST, AEP
Partner, Baker Tilly
June 24, 2010 at 3:00 p.m. ET
The 2010 Healthcare Reconciliation Bill tax provisions include a 3.8% surtax on investment income. This surtax, when combined with the expirations of the Bush Era tax cuts in December 2010, will move the highest marginal rate from 35% to 43.4%, an increase of 8.4%. Similar increases may also occur at the lower brackets. This requires CPAs and advisors to re-examine Roth conversions from 2010 through 2012 to help clients reduce their exposure to the new surtax.
The planning opportunities as a result of the new Healthcare Bill are not only great, but critical for your clients. Since the 3.8% surtax does not apply to distributions from IRAs and other qualified retirement plans, taxpayers may wish to increase contributions to IRAs and 401(k), 403(b) and 457 plans. Additionally, Roth IRA conversions will be considerably more favorable because they will generally lower future MAGI thereby avoiding the surtax. Join Robert Keebler, CPA, AEP, as he covers this planning strategy in detail along with additional Roth conversion tips:
- Mid-year Update on Roth Conversions
- Fine tuning conversion strategies
- Overview of the healthcare surtax
- Understanding the “Surtax Bubble”
- Effective strategies for impacting income and MAGI
- Roth IRA Conversion Tools
We will also have available immediately after the webinar a 15 minute demonstration of Bob Keebler’s Roth Evaluator developed in conjunction with CCH, a Wolters Kluwer business.
Equity Trust Professional Network