By: Brad A. Kucharo, CPA, CFP®
Virtually every doctor and spouse can now enjoy the benefits of a Roth IRA. While income taxes are due on the taxable portion of IRAs upon conversion, doctors can enjoy tremendous income tax and estate planning benefits from a Roth IRA. Below, tax planning expert Brad Kucharo*, CPA, CFP® illustrates the tremendous tax savings possible through a Roth IRA conversion.
Most every doctor and spouse can now enjoy the benefits of tax-free growth through a Roth IRA. While direct contributions to a Roth IRA are not permitted for doctors whose income (AGI) exceeds $177,000 [$188,000 in 2013; $191,000 in 2014**] if married, or $120,000 [$127,000 in 2013; $129,000 in 2014**] if single, all doctors can now convert their regular IRAs into Roth IRAs, regardless of income level.
The repeal of the income limit has created a virtual frenzy for Roth IRA conversions among investors. As of May 31 [2010**], Fidelity Investments...
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