Roth IRAs: Conversions, Mega Back-Door, Tax Calculations, and Recent Legislation

Roth IRAs certainly have advantages, such as no required minimum distributions, and beneficiaries will receive the Roth IRA tax-free. There may be new tax legislation that could change the way we plan for retirement assets. There are proposals to change the deduction for retirement plan contributions, making Roths much more valuable.

The webinar will review the impact of a Roth conversion on other tax aspects such as the QBI deduction, Social Security taxation, Medicare premiums, AMT, capital gains taxes, and NIIT. Many taxpayers have been circumventing the AGI limitation on Roth IRA contributions with the back-door Roth. Still, many eligible taxpayers are not taking advantage of the mega back-door Roth.

Our presenter will show how your client can put away up to $42,000 into a Roth. As a bonus, he will also review net unrealized appreciation (NUA) and how taking advantage of NUA can reduce your client's tax bills.

Listen as Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP of Pon & Associates, explains how Roth IRAs can be used to save substantial tax, recent legislation affecting these retirement planning vehicles, and how to avoid unexpected tax consequences during conversions.

1. Eligibility
2. Roths compared to traditional IRAs
3. Recent legislation affecting IRAs
4. Back-door Roths
5. Mega back-door Roths
6. Traditional IRA conversions
7. Planning opportunities

The panelist will review these and other key issues:

• Tax traps to consider before recommending Roth conversions
• Calculating the tax due on a Roth conversion
• Making a back-door and mega back-door conversion
• Changes made by SECURE Acts 1 & 2 and recent guidance from the IRS regarding IRAs

Learning Objectives

After completing this course, you will be able to:

• Identify tax traps to consider before recommending Roth conversions
• Calculate the tax due on a Roth conversion
• Understand the impact of making a back-door and mega back-door conversion
• Differentiate a Roth IRA from a traditional IRA
• Ascertain the changes made by the SECURE Act, CARES Act, and recent legislation related to IRAs

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).