Roth IRA Conversion Deadline -December 31

Presented by Marc Aarons

I’m reaching out with a timely reminder that the deadline for converting retirement funds to a Roth IRA is coming up on December 31st.

There are a variety of reasons why utilizing this conversion before the end of the year could be beneficial to you, depending on your situation, including:

1. Locking in Current Tax Rates: If there is potential for tax rates to go up in the future, by converting now, you are able to take advantage of current lower rates.
2. Lower Tax Bracket: If you’ve had a low-income year, converting to a Roth IRA could put you in a lower tax bracket, resulting in a smaller tax bill.
3. Anticipating Future Earnings Growth: If you expect the investments in your retirement account to grow significantly in the future, converting to a Roth IRA means future withdrawals of those greater sums will be tax-free.
4. Reduce RMDs: Making conversions can help to reduce the amount in your traditional retirement accounts, potentially lowering future Required Minimum Distributions (RMDs) and associated taxes.

If you have any questions or want to discuss this further, please reach out as soon as you can. I’m always happy to help.

Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com

www.ocmoneymanagers.com

This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.