Detail Timing The Roth IRA Conversion   Oleh:  Hill, Nancy Thorley ; Stevens, Kevin T. Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 188 no. 1 (Jul. 1999), page 73. Topik: CONVERSION; roth IRA; conversion Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.9 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel It’s obvious the federal tax consequences should weigh heavily in any tax payer’s decision to convert a traditional IRA to a Roth IRA. What may be less clear - even to some CPA s - is that the decision may have state tax consequences as well. While several widely available tax software and spreadsheet programs allow tax payers to estimate their federal tax liabilities from converting, those programs usually ignore state tax laws. CPA s can provide value - added advice to conversion clients by alerting them to the existence and complexities of state laws. Even tax payers who converted in 1998 need to consider the perhaps unexpected state tax consequences of moving to another state during the four-year amortization period of the taxes due on conversion. Thus, all tax payers need to understand the varying state tax policies surrounding past and future Roth IRA conversions. While conventional wisdom is that taxpayers should base their conversion decisions on when they plan to retire and their expected future tax brackets, in some cases failure to consider state income taxes can lead clients to convert to Roth IRA s when they should not. Our survey of state tax departments found that many states planned to mirror the federal tax treatment of the conversion. This means in some circumstances CPA s and their clients can determine the effect of state taxes on Roth IRA conversions using prepackaged tax software or spreadsheet models by simply adding the applicable state tax rate to the federal rate in calculating total tax liability. In states with unique tax features, however, CPA s will need to make special calculations to make sure clients get the right advice. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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