In his latest piece, Walter Pardo, CEO & Certified Wealth Strategist at WFP Tax Partners, shares some important advice about 401K and IRA conversion strategies.
The saying I always use is “paying taxes once is your obligation, but paying taxes twice is your fault.” Typically, qualified assets, like 401Ks and IRAs, have never been taxed, but they continue to grow. And in most cases, the tax liability on these qualified assets is completely ignored.
When converting to a Roth IRA, you will trigger a taxable event. In nearly all cases, the money to pay the tax on that Roth IRA conversion should come from outside funds or non-qualified accounts.
Consider these questions. What do you think tax rates will be in the future? And, when will you need the money?
Contact us for more information about how we can help you make a wise decision regarding Roth IRAs and your complete tax picture.
To learn more about WFP Tax Partners and the services they offer, visit them online at www.wfp-taxes.com.