Wall Street Journal: Is It Time to Convert to a Roth 401(k)?
Compiled by Jared Trexler
The new tax provisions within the American Taxpayer Relief Act of 2012 make some subtle, if not substantial, changes to income tax rates, the top estate tax rate, capital gains rates for upper-income earners and more.
Yet, from a retirement planning standpoint, the biggest provision may be the change to in-plan Roth conversions. The Wall Street Journal's Kelly Greene examined this "little-noticed provision in the new tax law (that) gives many more workers a chance to stockpile tax-free retirement savings."
From the government's standpoint, the procedural change to in-plan Roth conversions is a revenue raising measure, but from a retirement planning standpoint, some financial planners are calling the move a "bonanza for investors, especially younger workers, while others have deemed it a dangerous trap."
CLICK HERE to read Greene's entire piece, including expert analysis from Ed Slott and Company IRA Technical Consultant Jeffrey Levine and four Ed Slott IRA Advisors, Todd Schneider, Adam Wolf, Jeff Cutter and Michael Schwartz.
And it case you missed it, here are links to other important initial explanations of the new 2013 tax laws.
QCDs for 2012? Yes They Are Now Available
Taxpayer Relief Act of 2012: 5 Key Retirement Planning Points
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to firstname.lastname@example.org for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at email@example.com or (516) 536-8282 with any questions.