Tealbrook Financial Reminds Taxpayers There Is Still Time to Reverse 2010 Roth IRA Conversions and Save on Taxes; Offers Free Advice

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Taxpayers who converted IRAs to Roth IRAs in 2010 may reverse, or recharacterize, or all or part of the conversion by October 17, 2011 to reduce their 2010 tax liability. Many taxpayers are concerned about paying taxes on the converted amount, which has lost value since the conversion. Others, due to the current state of the economy, lack the funds to pay the tax incurred. For the first 500 respondents, Tealbrook will calculate the tax liability due to a 2010 Roth conversion and advise if recharacterization makes sense--at no charge.

Tealbrook Financial reminds taxpayers who converted a regular IRA to a Roth IRA in 2010 that the opportunity to reverse the transaction—including its tax implications—will expire on October 17, 2011. Tealbrook will offer free analyis and advice prior to October 14 to help investors with this decision.

“I have had several clients express concern over their investment losses or lack of funds to pay the tax incurred due to the conversion,” says Michael Tsiaklides, Certified Financial PlannerTM, IRS Enrolled Agent and Principal at Tealbrook Financial LLC. “They are pleasantly surprised to learn that they may reverse, or recharacterize, all or part of that Roth conversion, as if it essentially never happened.”

Tsiaklides urges taxpayers who share these concerns to take immediate action and sit down with their financial and tax advisor to discuss the merits of recharacterizing their Roth IRA before the deadline. Residents in areas impacted by recent natural disasters (e.g. hurricane, wildfires), may have until October 31 to recharacterize. This includes taxpayers in Connecticut, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Texas, and Vermont, depending on the county in which they live. Additional information is available from the IRS.

Special Offer
Tealbrook Financial is offering a complimentary review of existing Roth IRAs through October 14 at no charge, regardless of which firm holds the Roth IRA account. Tealbrook will calculate the tax liability due to a 2010 Roth conversion and advise if recharacterization makes sense based on the individual’s unique financial situation.

To take advantage of the complimentary Roth IRA review, or to receive additional information, email mike(at)tealbrookfinancial(dot)com.

About Tealbrook Financial, LLC
Founded in 2001, Tealbrook Financial LLC and its affiliated company Tealbrook Advisors LLC provide wealth management, tax, accounting, and advisory services for individuals and small businesses. Principal Michael Tsiaklides is a licensed insurance agent in Missouri and Illinois, an IRS Enrolled Agent, and a Certified Financial PlannerTM. The mission of Tealbrook Financial, LLC is to understand the unique financial goals and objectives of each and every client, and to provide products, services, and advice to work toward those specific goals.

Under IRS guidelines, we hereby inform you that any Federal tax advice contained in this communication is not intended or written to be used, and cannot be used for the purpose of (1) avoiding penalties that may be imposed by the Internal Revenue Service or (2) promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice.

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