Roth Conversion

Talk to your clients about something new. Our PlanLab Roth sales tracks have unmatched depth and breadth. You’ll be able to show the benefits of conversion and how life insurance can pay the taxes.

Should Your Client Convert? How Should They Pay Taxes?

QPDA IconQPDA IconAnswer two main “Roth Conversion” questions for clients: 1) Should I convert to a Roth? and 2) Should I pay the taxes out of my IRA or out of Other Assets?

PDF Icon View Sample Presentation

Target Client

  • Middle Market – Under $2MM Household
  • Estate Tax Sensitive – $2MM+ Household
  • Near Retirement (50’s, 60’s)
  • Retirement Years (60’s, 70’s)

Details

  • Compare converting vs. not converting in 3 simple graphs
  • Illustrate the conversion immediately (next month) or any future year before death
  • Choose to pay conversion taxes out of IRA or Other Assets
  • Illustrate paying living expenses, gifts, or life insurance premiums

Convert at Death, Use Life Insurance to Pay Taxes

QPDA IconQPDA Icon Show a client the benefit of the Roth conversion and show them a great way to pay the taxes – life insurance! Illustrate conversion to a Roth at the death of the IRA
owner and use life insurance on the IRA owner to pay the conversion taxes.

PDF Icon View Sample Presentation

Target Client

  • Middle Market – Under $2MM Household
  • Estate Tax Sensitive – $2MM+ Household
  • Near Retirement (50’s, 60’s)
  • Retirement Years (60’s, 70’s)

Details

  • Compare not converting vs. converting vs. converting with new life insurance
  • Illustrate the conversion at the death of the IRA owner
  • Compare future Net Worth of surviving spouse with and without the new life insurance
  • Illustrate paying living expenses and gifts in addition to life insurance premiums

Convert at Death, then Stretch the Roth IRA

QPDA IconQPDA Icon
Illustrate the “stretch” concept for existing Roth IRAs, or convert an IRA to a Roth IRA and then “stretch” tax-deferred dollars over multiple generations. Illustrate the need for life insurance to pay estate and conversion taxes so the Roth IRA can stay intact.

PDF Icon View Sample Presentation

Target Client

  • Middle Market – Under $2MM Household
  • Estate Tax Sensitive – $2MM+ Household
  • Near Retirement (50’s, 60’s)
  • Retirement Years (60’s, 70’s)

Details

  • Compare traditional rollover vs. “stretch” approach
  • Calculates client, spouse, and non-spouse beneficiary distributions
  • Calculates estate taxes attributed to plan and Roth conversion taxes
  • Conversions in 2010 automatically receive 2 year tax treatment