Traditional IRA and Roth IRA Bakersfield CA

Given the significant market downturn it may not be a bad time to convert your traditional IRA to a Roth IRA in Bakersfield. Right now, anyone with modified adjusted gross income of less than $100,000 a year (individual or joint income) can convert a traditional IRA account to a Roth IRA. Higher-income Americans are scheduled to get the same break in 2010.

Mr. Peter H. Hunt, CFP®
(661) 327-8560
PO Box 10959
Bakersfield, CA
Firm
Wells Fargo Advisors
Areas of Specialization
Asset Allocation, Comprehensive Financial Planning, Education Planning, Employee and Employer Plan Benefits, Estate Planning, Investment Management, Investment Planning

Data Provided by:
Laurence Edward Menna, CFP®
(661) 837-8500
1601 New Stine Rd Ste 180
Bakersfield, CA
Firm
Menna Capital Management, LLC
Areas of Specialization
Comprehensive Financial Planning, Investment Management, Retirement Income Management, Retirement Planning, Wealth Management
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000

Profession: Self-Employed Business Owners

Data Provided by:
Jeffrey R Bell, CFP®
(661) 322-2033
1100 Mohawk St, STE 180
Bakersfield, CA
Firm
Edward Jones

Data Provided by:
Mr. Steven A. Barnes, CFP®
(661) 322-9799
5060 California Ave Ste 1020
Bakersfield, CA
Firm
Barnes Wealth Management Group
Areas of Specialization
Asset Allocation, Business Succession Planning, Charitable Giving, Comprehensive Financial Planning, Elder Care, Estate Planning, Investment Management
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $50,001 - $100,000

Profession: Not Applicable

Data Provided by:
Mr. William R. Ramsey, CFP®
(661) 283-1361
5812 Calico Cove Ct.
Bakersfield, CA
Firm
William R. Ramsey CPA CFP
Areas of Specialization
Accounting, Budget Development, General Financial Planning, Investment Planning, Retirement Planning, Tax Preparation
Key Considerations
Average Net Worth: $100,000 or less

Average Income: $50,001 - $100,000

Profession: Government Employees

Data Provided by:
Mr. Carl A. Engele, CFP®
(661) 397-9074
110 S Montclair St Ste 106
Bakersfield, CA
Firm
OneAmerica Securities

Data Provided by:
Mr. V. Mon Bertolucci, CFP®
(661) 322-3504
5401 Business Park South
Bakersfield, CA

Data Provided by:
Mr. Steven Michael Bowles, CFP®
(661) 835-8189
200 New Stine Rd
Bakersfield, CA
Firm
Bowles Financial & Ins. Group, Inc.
Areas of Specialization
Asset Allocation, Comprehensive Financial Planning, Retirement Income Management, Retirement Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000

Profession: Self-Employed Business Owners

Data Provided by:
Mr. Blake Goehring, CFP®
(661) 326-7707
5080 California Ave Ste. #102
Bakersfield, CA
Firm
Merrill Lynch

Data Provided by:
Mr. Bradley C. Barnes, CFP®
(661) 663-4602
9100 Ming Ave Ste 205
Bakersfield, CA
Firm
Morgan Stanley Wealth Management
Areas of Specialization
Investment Management
Key Considerations
Average Net Worth: $1,000,001 - $5,000,000

Average Income: $100,001 - $250,000

Profession: Not Applicable

Data Provided by:
Data Provided by:

Traditional IRA and Roth IRA

Given the significant market downturn it may not be a bad time to convert your traditional IRA to a Roth IRA. Right now, anyone with modified adjusted gross income of less than $100,000 a year (individual or joint income) can convert a traditional IRA account to a Roth IRA. Higher-income Americans are scheduled to get the same break in 2010.

Remember that when you do a conversion, you must pay income tax on the amount you are converting, which can be all of the funds in the traditional IRA or just a portion of those assets. But, subject to certain restrictions, you won’t pay tax when you finally need to withdraw your money. That’s where the silver lining comes in for you or for your heirs if you pass that money on to them.

Take another look at your statements and how much your investments are down. Assuming that the markets perform historically and fight their way back, your tax-free amount available for withdrawal could accumulate significantly under that Roth status.

Things to consider:

1) Time to retirement matters: If you have more than five years until you plan to withdraw your retirement funds, conversion of traditional IRA assets to a Roth IRA might make sense. The longer the time span where earnings can grow tax deferred, the greater the benefit of being able to withdraw those earnings without paying tax on them.

2) Your tax rate at retirement is important: Many people, such as business owners, may be paying taxes now at a fairly low rate. So they might pay higher taxes at retirement. If that’s the case, converting to a Roth might make a lot of sense. Additionally, with Social Security benefits being taxable at certain income levels, Roth IRAs can allow you to limit or eliminate such taxes.

3) A Roth conversion can be expensive: You’ll have to pay taxes on contributions that you previously deducted, as well as taxes on the accumulated earnings. Also, you need to be aware that conversion could push you into a higher tax bracket, especially if you’ve accumulated sizeable earnings over the years. This is why a conversion needs to be planned with a tax expert. Why? It may trigger the Alternative Minimum Tax (AMT) due to those high earnings.

Click here to read more from TheAdvice.com