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Should You Do a Roth Conversion Before the (Possible) Expiration of TCJA in 2026?
by Meg Bartelt, Flow Financial Planning
As you might know, there’s a huge, all-encompassing change to tax law potentially coming up at the end of 2025. If it happens, you will almost certainly be big-time impacted.
What is that all-encompassing change to tax law? It’s the expiration of the Tax Cut and Jobs Act, which went into effect on January 1, 2018. All of the changes the TCJA ushered in will expire at the end of 2025—and tax rates and other rules therefore go back to the pre-2018 levels—unless Congress renews it.
It’s anybody’s guess whether Congress will renew it.
How Can Roth Conversions Help With Tax Efficiency?
by John Foligno, Grand Life Financial
When rolling funds over, or converting, from a qualified retirement accounts (401(k), traditional IRA, SIMPLE IRA, or SEP IRA) to a Roth IRA, you will need to pay the taxes, as those accounts were funded with pre-tax dollars. If you have sufficient cash available, consider using that money to pay the taxes so you can keep your retirement account intact, allowing for more tax-free growth. Here’s some ways that a Roth conversion could help you to be tax-efficient:
Roth Conversions - Saving Taxes with a New Kind of Math
by Chad Holmes, Formula Wealth
For financial advisors who know both investments AND taxes, one of the many tools in our client serving toolbelt is the Roth conversion. But what is it, how do they work, and how do you know when it's right for you?
aRothmetic is the super nerdy pun I created for describing the calculations needed to identify both how much of a Roth conversion you should complete each year, and the total projected value saved over your lifetime by doing so.
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