International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Thursday, September 11, 2014

Recharacterizing Roth IRAs Smartly: Use Multiple Roths

Recharacterizing Roth IRAs Smartly: Use Multiple Roths.

The benefits of creating a stream of tax-free income during retirement is key to most successful retirement income strategies, and a Roth conversion that allows the client to “undo” the transaction if investments perform poorly is an attractive option for accomplishing this goal.
However, despite the benefits that recharacterizing a Roth conversion can offer, this route can sometimes function as a double-edged sword by erasing the gains on successful investments within the account. Despite this, a carefully planned Roth conversion strategy can help clients avoid this risk: by using separate accounts, clients can maximize the value of their converted retirement funds and simultaneously take full advantage of the ability to recharacterize underperforming Roth investments.

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sounds great...

Posted by: DR FRANK HOPE PHD | Sep 18, 2014 4:52:58 PM

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