Chalk Talk: Roth IRAs: Conversions, Mega Back-Door, Tax Calculations, and Recent Legislation
“MainStreet Chalk Talk”
The MainStreet Financial Planning Discussion Club
When: Tuesday 11-15-22 at 7pm Eastern; 4pm Pacific
Recorded and able to retrieve for one week
How: Zoom Meeting, Free to ongoing clients; $10 for guests
for the recording!
Conversions, Mega Back-Door, Tax Calculations, and Recent Legislation
Hosted by: Cynthia Flannigan
CPA/PFS, CFP, EA, USTCP, AEP
of Pon & Associates
This session will discuss Roth IRAs and Roth conversions for those eligible to make IRA contributions, conversions, and withdrawals. Mr. Pon will discuss determining those who benefit most from conversions, calculating the tax on a Roth conversion, and–most importantly–how to avoid tax surprises when affecting these conversions.
Roth IRAs certainly have advantages, such as no required minimum distributions, and beneficiaries will receive the Roth IRA tax-free. There may be new tax legislation that could change the way we plan for retirement assets. There are proposals to change the deduction for retirement plan contributions, making Roths much more valuable.
Mr. Pon will briefly review the impact of a Roth conversion on other tax aspects such as the QBI deduction, Social Security taxation, Medicare premiums, AMT, capital gains taxes, and NIIT. Many taxpayers have been circumventing the AGI limitation on Roth IRA contributions with the Back-Door Roth. Still, many eligible taxpayers are not taking advantage of the Mega Back-Door Roth.
Join us as Mr. Pon explains how Roth IRAs can be used to save substantial tax, recent legislation affecting these retirement planning vehicles, and how to avoid unexpected tax consequences during conversions.
Mr. Pon is a Certified Public Accountant, Personal Financial Specialist, Certified Financial Planner, Enrolled Agent, United States Tax Court Practitioner, and Accredited Estate Planner in Redwood Shores, CA. He has been in practice since 1986 and enjoys helping his clients reach their financial goals. He frequently speaks on tax and financial planning topics to tax professionals, financial advisors, and the general public nationally.
Mr. Pon received his BS in Business Administration with emphases in Accounting and Finance from the University of California, Berkeley and MS in Taxation from Golden Gate University in San Francisco.