This document discusses the benefits of a Roth IRA conversion. It notes that individuals age 50+ have a higher contribution limit and catch-up provision for Roth IRAs. It provides an example of a 50-year-old with a $500,000 traditional IRA who could convert $100,000 in 2012 at a 25% tax rate, or $89,286 in 2013 at a 28% rate. It recommends keeping converted funds in accounts if they increase 17.9% or more to outweigh the taxes paid. The document promotes comprehensive wealth management services.
21. $75,000 income
$67,700 at 25%
$74,750 at 28%
$217,450 total
$170,900 at 31%
should be kept if
accounts are up
17.9% or more
$388,350 total
$313,350 conversion
