Retirement Tax Planning Questions

A Roth conversion moves assets from a traditional IRA to a Roth IRA. The previously untaxed portion generally becomes taxable income. It is different from making a regular annual Roth contribution.

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The previously untaxed portion is generally included in income for the tax year of the conversion. After-tax basis may exclude part of the conversion from income, so the whole balance should not automatically be treated as taxable.

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Partial conversions can be considered in different tax years. Comparing each year's conversion with other taxable income may help manage bracket exposure, depending on your situation. A multi-year schedule does not assure a lower total tax bill.

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Yes. Qualified Roth IRA distributions generally require a five-tax-year holding period plus age 59½ or another qualifying condition. A separate five-year period applies to each conversion when determining certain early-distribution additional taxes; exceptions can apply.

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No. Roth IRA owners do not have lifetime required minimum distributions from their Roth IRAs. Beneficiaries have separate distribution rules after the owner's death.

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The taxable portion is added to other income in the conversion year. A larger conversion may cross income-tax brackets and affect income-based Medicare premiums. The amount, timing and available cash should be considered together.

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Cash outside an IRA may be considered as a source for the tax payment rather than withholding it from the IRA distribution. Money withheld is not money deposited into the Roth IRA and may have additional tax consequences. Liquidity and other spending needs matter.

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Most non-spouse individual beneficiaries who are not eligible designated beneficiaries must empty an inherited IRA by the end of the 10th year after the owner's death under the SECURE Act rules. The owner's date of death, account type and beneficiary status matter.

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Eligible designated beneficiaries include a surviving spouse, the owner's minor child until majority, an individual who is disabled or chronically ill under the applicable definitions, and someone not more than 10 years younger than the owner. Different rules apply within these categories.

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Yes. When the owner died on or after the required beginning date, annual beneficiary RMDs generally apply as well as the final 10-year deadline. Do not assume the deadline permits waiting until the final year.

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For traditional IRA owners born from 1951 through 1958, the applicable age is 73. For those born in 1960 or later, it is 75 under SECURE 2.0. Earlier birth cohorts have earlier starting ages. If you were born in 1959, confirm your applicable age against current IRS guidance with a qualified tax professional.

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Taxable withdrawals can increase the income used to determine how much of your Social Security benefit is taxable. Depending on combined income and filing status, up to 85% of benefits may be included in taxable income. This is not an 85% tax rate.

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IRMAA adds income-related amounts to Medicare Part B and Part D premiums. SSA normally uses tax-return income from two years before the premium year. A taxable conversion may affect that calculation. Certain income-reducing life-changing events may support a request for a lower adjustment.

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Qualified retirement-plan and IRA distributions are generally excluded from net investment income. However, taxable distributions can raise modified adjusted gross income, which may expose other net investment income to the 3.8% tax. The tax depends on both income measures and filing status.

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No. IRA distributions and investment income such as interest and dividends are not qualifying compensation for regular IRA contributions. Taxable compensation is generally required, although a spouse may qualify under the joint-return spousal IRA rules. Roth contribution income limits also apply.

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No. The term commonly describes a nondeductible traditional IRA contribution followed by a Roth conversion. Contribution eligibility, reporting and conversion tax rules still apply. Existing pre-tax IRA money may make part of the conversion taxable under the allocation rules.

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No. Insurance contracts have different purposes, costs, liquidity restrictions and tax rules. Cash value and annuity earnings may receive tax deferral, but withdrawals, loans, policy lapses or surrenders can create tax or financial costs. The contract and your situation must be evaluated; no product is endorsed here.

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Possibly, if you meet HSA eligibility requirements. These generally include qualifying high-deductible health coverage, no disqualifying other coverage, no Medicare enrollment and not being claimable as another person's dependent. Qualified medical-expense distributions receive favorable federal tax treatment.

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The call is a general review of your tax picture plus your whole retirement plan. It is by phone, with no office visit needed. You may discuss which questions deserve further attention. It is educational and does not create an advisory relationship.

The review call is intended for households with $1M+ in investable assets, not including their home. The short tax picture check asks about your circumstances and determines whether the scheduling option is available. Other visitors receive educational resources.

No. The call happens by phone, so you can take it from wherever you are.

No. Results depend on your facts, your goals and current law, and no outcome is guaranteed. The strategies discussed are designed to manage taxes over time and may reduce them depending on your situation.

If you request a call, your information is shared with a financial advisor at an independent financial planning firm, who will contact you. See the disclosure at the bottom of this page for details.

No. Everything here is general and educational. Please consult a qualified tax professional about your situation.