New Rules for New Year Prompt Need for Professional Help and Guidance
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Starting January 1, 2010, income restrictions for converting to a Roth IRA will be lifted, allowing individuals who make more than $100,000 adjusted gross income to convert assets from certain retirement savings accounts, such as a traditional IRA or 401(k) with a previous employer, to a Roth IRA (restrictions may apply to residents in certain state(s)*). A recent survey from Charles Schwab found that 34 percent of respondents are still unsure of the general benefits of a Roth IRA versus a traditional IRA and, further, more than one quarter find the details of converting more confusing than healthcare reform.
“The pros and cons of a Roth IRA conversion can be complicated, which is why we strongly encourage investors to discuss the decision with a financial advisor and a certified tax planner based on their individual circumstances and overall retirement savings strategy and objectives,” said Rande Spiegelman, vice president of financial planning for Schwab.
Schwab is offering clients live, personalized guidance and analysis regarding Roth IRA conversions including a discussion of key Roth IRA considerations and a customized report that includes:
To better inform investors, Schwab has also outlined five considerations to help drive the conversation with a professional advisor about the 2010 Roth IRA conversion opportunity:
Five Tips When Considering a Roth IRA Conversion
Schwab has additional tools and online resources including a Roth IRA Conversion Calculator, Roth IRA Conversion Q&As, and key considerations for Roth IRA conversions available on Schwab’s Roth-dedicated site: www.schwab.com/roth. Schwab will continue to add information and resources to the site as the January 1, 2010 conversion rule change date approaches.
*Changes to Roth IRA conversion income limit rules may not apply in all states. Certain states may impose penalties on conversions above the current income limits. Consult with a tax advisor for more information.
This information is for general information purposes only and is not intended as a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends you consult with a qualified tax advisor, CPA, financial planner or investment manager.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.6 million client brokerage accounts, 1.5 million corporate retirement plan participants, 687,000 banking accounts, and $1.3 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Named Highest in Investor Satisfaction by J.D. Power and Associates, its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com. (1109-11847)
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