Roth IRA Conversion Opportunity
An Open Road for Retirement Opportunity
A number of financial vehicles can help you save for retirement, including popular choices like 401(k), SEP or traditional IRA plans. Another type, the Roth IRA, may be an ideal retirement savings vehicle for you. After all, it has features that allow you to:
- potentially grow money for retirement
- take retirement withdrawals tax free, after age 59½ and a Roth account has been established for 5 years; Roth IRA participants pay current income tax rates on any contributions/conversions to the account, and must have held a Roth IRA account for five years and waited until age 59½ before taking withdrawals
- no income taxes paid on earnings or principal after five years and age 59½
- pass assets to your beneficiaries free of federal income tax1
- make contributions after age 70½, with earned income and when meeting contribution income limit qualifications
- avoid required minimum distributions(RMDs) at 70½
Is Switching Vehicles for You?
Talk to your financial professional to determine if you might benefit from converting a traditional IRA, or other qualified retirement plans, to a Roth IRA. Careful consideration should be made before you convert a traditional IRA to a Roth IRA as significant tax consequences will occur. Please consult your attorney or tax advisor to understand how a conversion will affect your federal income tax bill, state income taxes and your adjusted gross income (AGI).
U-turns Allowed - Changing Your Mind
Another unique feature to this Roth IRA opportunity is the ability to change your mind after you convert to a Roth IRA. You can make a U-turn with what is known as a Roth Recharacterization, allowing you to revoke your Roth conversion and change back to a traditional IRA. Recharacterization is a complex process and many factors need to be considered in your decision making. The deadline for recharacterization is the due date of your tax return for the year of the original conversion, including extensions. (If you follow a special procedure, you can obtain an extended due date even if you filed your tax return without an extension.)
It isn"t enough for you to take action within your tax filing due date. The insurer has to complete the recharacterization before your tax filing deadline. It's best to take action well in advance of your tax filing due date so there's time to follow up and confirm that the recharacterization has been completed and reported appropriately.
The information presented here is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Western & Southern Financial Group recommends consultation with a qualified tax advisor. Western & Southern Financial Group member companies and their representatives do not offer tax advice.
Contact your financial professional to learn more about converting your traditional IRA into a Roth IRA.
Roth IRA Conversion Calculator Now Available
Use this tool to determine whether a conversion from a traditional IRA to a Roth IRA may make financial sense for you. Simply input your data and quickly see the results.
1 Beneficiaries must take required minimum distributions.
Payment of benefits under the annuity contract is the obligation of, and is guaranteed by, the insurance company issuing the annuity. Guarantees are based on the claims-paying ability of the insurer. Investment return and principal value of an investment will fluctuate so units, when redeemed, may be worth more or less than their original cost. There is no guarantee of the investment performance or safety of the variable investment options in this variable annuity
Annuities are issued and guaranteed by Western-Southern Life Assurance Company, Cincinnati, OH, Integrity Life Insurance Company, Cincinnati, OH or National Integrity Life Insurance Company, Goshen, NY. Variable annuities are offered by Touchstone Securities, Inc.,* Cincinnati, OH. All are members of Western & Southern Financial Group. Integrity operates in DC and all states except ME, NH, NY and VT, where National Integrity operates. Western & Southern Life operates in DC and all states except AK, ME, NH, NY and RI. W&S Financial Group Distributors, Inc., is an affiliated agency of the issuer. Issuer has sole financial responsibility for its products. Product availability and features vary by state.
Earnings and pre-tax premium payments are subject to income tax at withdrawal. Withdrawals prior to age 59½ are generally subject to a 10% IRS penalty tax. Withdrawals may be subject to charges.Western & Southern member companies and their agents do not offer tax advice. For specific tax information, consult your attorney or tax advisor. Interest rates are declared by the insurance company at annual effective rates, taking into account daily compounding of interest. You do not have to purchase an annuity contract to fund an IRA or to benefit from a traditional IRA to Roth IRA conversion.
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment found in the product and fund prospectuses. For prospectuses containing complete information, access the product's toolkit on WSFinancialPartners.com or call 800.325.8583 (Integrity) or 800.433.1778 (National Integrity). Please read the prospectuses carefully before investing or sending money.
* A registered broker-dealer and member FINRA/ SIPC.
No bank guarantee.
Not a deposit.
May lose value.
Not FDIC/NCUA insured.
Not insured by any federal government agency.
