About Us
We provide customized fiduciary analysis to maximize your family's future net worth. We DO NOT manage assets or sell insurance or annuities.
- Roth IRA Conversion Rightsizing - These are permanent, so you want to convert the optimal about in the optimal years.
- Traditional 401K/IRA vs. Roth contributions decision, Retirement distribution planning, Backdoor & Mega-Backdoor Roth Contributions, and Child’s Roth
- Analyis is provided by a 10 year CFP®, prior 10+ year CPA, prior IRS Agent, and California Society of CPAs Instructor/Author/Speaker.
Some people feel confident they will be in lower tax brackets in retirement, but brackets can be misleading, as per this quote from Kitces.com: "..for many individuals, the tax bracket alone doesn’t accurately reflect the real impact of the Roth conversion. Because of the structure of the tax code, there are often ‘add-on’ effects created by adding or subtracting income – and these effects aren’t accounted for when simply looking at one’s tax bracket."
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01 How do you help?
If our free analysis shows that you are a candidate (there's at least 6-7 figures of future net worth improvement possible), we run a detailed, comprehensive scenario analysis using premium financial planning software to determine the optimal next steps. We'll then walk you through everything over a Zoom meeting (within 3 weeks of signing the 1 page agreement) and provide a follow-up document that includes a summary of the analysis and steps, along with all the supporting reports and calculations. Continued guidance to assist you with executing the steps is included also. If you are pleased with our service, we can schedule recurring updates as well.
Our services do not include legal, tax, or investment advice.
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02 Who
can benefit from a Roth Conversion?
You would be surprised - A lot more that you might think. Sure the first year of retirement is often a no-brainer, but sometimes people still working and in the highest bracket, or even people in their 80's & 90's can benefit significantly. There are also many that should not be doing conversions this year. You cannot know for sure until you take advantage of our free analysis.
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03
Should I do a Regular (Traditional) 401k or IRA contribution or a Roth 401k/IRA contribution (or Backdoor or Mega-Backdoor)?
This can be even more important than the Roth Conversion question, since it applies to ALL your working years. Careful, customized, competent analysis should be applied here as well. It's astonishing how many people did not/do not know about the Backdoor Roth. With 40 years of max contributions, the tax-free growth by age 95 can easily reach $10 million. which could mean over $1 million in potential tax savings for the family (and Roth accounts grow tax-free for heirs another 10 years after death). Don't assume the step-up will still be around in the future! This has been a frequent target of tax reformers and may expire before you do.
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03
Should I have my child start a Roth IRA account?
YES! YES! YES! As soon as they can earn $ (even if its just picking weeds or emptying the trash for your business). Everyone knows about the 529 college fund, but they often neglect this powerful strategy. The tax-free growth on max contributions from age 15 to 65 could be over $20 million by age 95.
Services
We help families and serve as an outsourced specialist for Advisors and Tax Preparers.
Roth Conversion Optimization
Customized analysis to Rightsize the amount of Conversion each year, and prevent Under and Over-Converting
Traditional 401k/IRA Contributions VS. Roth decision analysis
Your family's unique situation and goals need to be considered in the calculations to prevent making the wrong choice
BackDoor Roth, Mega-Backdoor, Roth for Kids
These tools are also crucial for maximizing your family's future after-tax net worth
Retirement Distribution Planning
Once cashflow turns negative, you want to make careful decisions about which accounts to pull from to minimize your total tax liability in retirement
Get your Free Assessement and take the 1st step towards Tax Efficiency
Frequently Asked Questions
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I have received some Roth recommendaitons - how do I know if I can trust the advice?
You can ask your helper questions that are listed in the back part of my June 2023 California Society of CPAs article, pages 19-21 https://viewer.joomag.com/california-cpa-june-2023/0016109001684854629?short&
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Should I should be contributing to a Roth 401k when I am young and a Traditional when I am older and earning more?
That's going to be true for about 60% of the population, but the best answer is "it depends." Use our free assessment to confirm so you don't leave significant $ on the table for the IRS
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Should I convert all of my IRA / 401K this year or spread it out?
It depends on your situation, estimates for the future, and your goals. Be cautious of blanket statement advice and don't settle for anything less than a competent, customized analysis.
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Are there penalties with early withdrawal from Roth accounts?
Yes, just as with traditional/regular retirement accounts, you want to be aware of the rules on early withdrawals. We are happy to help with questions on that and have a summary guide available.
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Do I need to have a large IRA or 401k for Conversions to make sense?
No, they can make sense for all asset levels, depending on what is going on with your other accounts, future income, expenses, age, etc.
Contact
Contact us today to get started on your free assessment
Location:
San Diego California
Email:
jim@precisionrothconversion.com
Call:
+1 619-379-3880