Advanta IRA Holds National Webinar: The Benefits of Converting to a Roth IRA

Share Article

Roth IRAs are popular retirement arrangements that allow earnings to grow tax-free, as all contributions are made after tax. This webinar on November 25 with Advanta IRA covers in detail why investors may want to consider converting their funds from other accounts and how to do so to gain the benefits Roth accounts offer.

Roth IRA, Advanta IRA
Advanta IRA is holding this webinar to discuss the Roth IRA in great detail, as well as the fact that the account can be self-directed—allowing owners greater control over their investment funds and decisions

When and why should a person convert retirement funds into a Roth IRA? There are eligibility requirements and even though tax-free growth is a great benefit, these accounts may not be for everyone. “Advanta IRA is holding this webinar to discuss the Roth IRA in great detail, as well as the fact that the account can be self-directed—allowing owners greater control over their investment funds and decisions,” says Jack Callahan, managing partner of Advanta IRA Services in Florida and Advanta IRA Administration in Georgia.

Self-directed IRAs are popular tools investors use that enable them to choose their own assets—from a very large pool of alternative investments outside the Wall Street norm. Common assets permissible within these accounts include real estate, private notes and mortgages, precious metals, stocks, bonds, foreign exchange trading, oil and gas options, and much more. When thinking of the added benefit of tax-free growth, one can easily see why a self-directed Roth plan is very attractive to savvy investors.

Investors with funds in a traditional IRA or similar account such as a SIMPLE, SEP, or 401(k) can move the funds in those accounts to a Roth through a conversion. A conversion is a taxable event, which generates a 1099R form that is sent to the IRS the year the conversion is made. It is important to note that the taxes cannot be paid by the retirement account. A conversion is taxed to the account owner personally as ordinary income in the year the conversion is made. However, moving forward, the account grows tax-free.

When considering a conversion, there are eligibility and distribution rules that apply of which one must be aware:

  •     Individuals of all ages who have an income can own a Roth IRA
  •     Anyone with earned income, which does not exceed the income limit is eligible to contribute to a Roth IRA
  •     As of 2010, the income limit for conversions is eliminated

Plan owners can contribute to these plans if they have taxable income and their modified adjusted gross income is less than:

Married individuals filing jointly:
$191,000 for 2014, which is increased to $193,000 for 2015

Single or head of household:
$129,000 for 2014, which rises to $131,000 for 2015

Account owners may take distributions tax free if:

  •     Owner is 59½ years of age AND has had a Roth IRA for at least five years
  •     Owner is disabled
  •     Owner is buying a home for the first time

There are other distribution rules that apply which are covered in great detail during Advanta IRA's webinar.

Additional topics included answer questions about why someone would convert to a Roth IRA, the process, rules involved, and most importantly, when the conversion should occur. “Most individuals visit their tax preparer in January and February and miss the opportunity to convert funds into these plans,” says Callahan. Converting assets in a self-directed IRA (like real estate and mortgage notes) can be a little tricky and this webinar will also address what documentation is required to convert these types of assets.

Investors of all levels are encouraged by Advanta IRA Services to attend this webinar.

Event: Webinar – What You Need to Know About Investing in Private Offerings
Date: November 25, 2014
Time: 12:00 – 1:00 pm EST
Location: Online
Cost: No charge
Register: No later than 5:00 pm EST on November 24th by contacting Larissa Greene by phone at (800) 425-0653 x 1140, or by emailing lgreene(at)advantairagroup(dot)com.

About Advanta IRA

Advanta IRA Services, located in Largo, Florida, has been in operation for over 10 years, providing administrative service to owners of self-directed IRAs throughout the Tampa Bay and Sarasota, Florida regions. Advanta IRA Administration offers a second location serving the Atlanta, Georgia area and surrounding regions. Both offices are managed by Jack Callahan, J.D., CFP™. Advanta IRA offers classes, seminars and other educational tools designed to assist clients in managing self-directed IRAs by investing in real estate, notes, private placements and other non-traditional assets that have the potential to maximize IRA earnings on a tax-free or tax-deferred basis.

About Jack Callahan

Jack M. Callahan, J.D., CFP™, is the managing partner at Advanta IRA Services in Largo, FL and Advanta IRA Administration in Atlanta, GA. Jack established the corporate office, Advanta IRA Services, in 2003. Prior to that, Jack delivered specialized counsel to real estate investors, small business owners and real estate professionals on tax, legal and financial matters. As an industry expert, Jack is a frequent speaker on the topic of self-directed retirement plans and an accredited continuing education instructor for the Florida and Georgia Bar Associations, Florida and Georgia Real Estate Commissions, and The American Institute of Certified Public Accountants. He earned his bachelor of science degree in finance and multinational business from Florida State University and his law degree from the University of Florida College of Law.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Scott Maurer
Follow us on
Visit website