Roth IRA

Houston Parents: Leave Legacy via Roth IRA

Published on: February 17, 2015 | By McCulloch & Miller, PLLC

Roth IRAs intrinsically make phenomenal transfer of wealth vehicles. With reduced estate taxes and no income tax for heirs to pay on withdrawals, establishing a Roth IRA or even converting to one from a Traditional IRA seems to be a simple decision. Just know what you are doing ahead of time.

When planning your estate, keeping all parties in mind is important. So it is with Roth IRAs.

A recent Benzinga article, titled “Legacy And Estate Planning With A Roth IRA,” says you should think about not only the account holder's tax situation, but the heir’s as well and consider the tax burdens your heirs may inherit.

Ring In the New Year with a Roth IRA

Published on: January 1, 2015 | By McCulloch & Miller, PLLC

Sharron Epperson, who is CNBC’s senior personal finance correspondent, stressed the importance of retirement planning in the coming year — with two products in particular.

Need a financial resolution for 2015? Save as much money as you can in a Roth IRA. One of the best things you can do to set yourself up for financial success in the future is to be strategic with your savings.

According to a recent article at gobankingrates.com, titled “CNBC’s Sharon Epperson on Why You Need a Roth IRA in 2015,” in the event of an emergency make sure you're able to withdraw your contributions at any time without incurring penalties or fees. This is also a terrific way to save for retirement, because you might be in a higher or lower tax bracket when you’re in your 60s. Who knows?

Houston Residents and Roth IRAs

Published on: December 12, 2014 | By McCulloch & Miller, PLLC

These three questions merely scratch the surface of other factors that may need to be considered. Keep in mind that your estate at age 45 is likely very different from the one you’ll have at age 65 and 85 — your accounts change, you spend/inherit assets, and you gain/lose family members. The more complex your situation, the more you’ll benefit from working with a skilled financial adviser, tax specialist, and estate attorney.

If you are considering a Roth IRA, ask yourself these three questions:

1. Will your Roth outlive you? In estate planning, the top two reasons for Roth conversions are to bequeath tax-free assets and to reduce your taxable estate. It’s critical to project your spending lifestyle relative to your net worth to understand how your assets may be used in retirement. This allows you to see what assets are likely to be part of your remaining estate.

The Roth IRA Is “Mr. Popularity” in Houston and Beyond

Published on: January 27, 2014 | By McCulloch & Miller, PLLC

Conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, according to data released [January 3rd] by the Internal Revenue Service.

As reported in Bloomberg on the day of an IRS announcement, conversions from traditional to Roth IRAs increased by nine times in 2010. That was the first year of new laws surrounding the tool, pulling in over 10% of all millionaires with it. Indeed, this rise in popularity means a Roth IRA is food for thought.

For a bit of the history behind the IRS data, have a look at the original Bloomberg article titled “Tax Break for IRA Conversion Lured 10% of Millionaires.” Roth IRAs are just another IRA in that it is an account earmarked for a retirement account. Interestingly, Roth IRAs work backwards by taxing at the time of deposit rather than at the time of withdrawal. That timing is the crucial difference.