Roth Conversions

I hosted a wonderful Advisors Forum CPE teleconference today.  Bob Keebler spoke on Roth Conversions.  My take on it is, while not for everyone, everyone with a retirement account should at least consider taking advantage of Roth Conversion.  The design options of a Roth Conversion are virtually unlimited as you can do partial conversions and multiple conversions.  Multiple conversions allow you to take advantage of the Recharacterization rules to only convert those accounts that have grown in value.  It is possible to pay the tax out of the retirement account, or to enhance the Roth balance, pay the tax with dollars outside of the account.  In certain circumstances, Roth Conversions can be used to enhance Asset Protection.

Again, everyone should consider taking advantage of Roth Conversion.