Description
The appeal of a Roth-style retirement account is the potential for tax-free growth for life. However, the reality is that creating a Roth account has a ‘cost’ – the upfront tax liability of contributing to (or converting into) the account, which is avoided with a traditional pre-tax IRA or 401(k). As a result, optimal Roth strategies do not merely involve contributing to or converting into Roths, but managing the timing and leveraging the available tax law to maximize the strategy.
Join Chief Financial Planning Nerd Michael Kitces at the September Kitces Monthly Webinar, where he’ll share techniques to maximize Roth contributions, including “Backdoor Roth” IRAs and “Mega Backdoor Roth” 401(k) strategies, leveraging the Roth recharacterization rules to optimally fill lower tax brackets, and being able to ensure that an investment in a Roth has a positive return before being required to commit to it!
Learning Objectives
At this Kitces Monthly Webinar, advisors will learn:
• How to calculate the amount of after-tax contributions needed to equal the same amount of pre-tax contributions given various tax rates and pre-tax contribution amounts
• The mechanics of the “Backdoor” Roth IRA strategy and considerations for using it
• The rules for successfully implementing a Mega “Backdoor” Roth IRA Strategy
• How to create additional tax planning flexibility using partial Roth conversion