Читать книгу 2012 Estate Planning - Martin Inc. Shenkman - Страница 54

The much talked about conversion of an IRA to a Roth IRA might warrant evaluation in light of the possibility of income tax increases. One of the motivating factors to convert a regular IRA to a Roth IRA was that the income tax paid would be removed from your estate thereby reducing your estate tax. If you are considering conversion of a large IRA, the conversion may be enough to avoid the federal estate tax and even the need to file a return. However, if the exemption drops in 2013 to $1 million (or even President Obama’s proposed $3.5 million) this may no longer be the case, but the savings, especially if a 55 percent rate replaces the current 35 percent rate, could be significantly greater. The potential for greater income tax rates in future years, as compared to a potentially lower rate if conversion occurs in 2012, should all be considered. Even if you had evaluated conversion years ago when it first became a possibility, you should again reconsider the pros and cons in light of the current transfer and income tax uncertainties. Opportunity could exist. Roth conversions are an extremely complex and important matter. If you are not versed in these matters, you should secure the assistance of an expert to address the nuances. Additional planning for Roth conversions in 2012 is discussed in Chapter 9.