Man’s Best Friend – Roth Conversions

Okay, so maybe my two rescue dogs are my loyal companions, but in the financial planning world, Roth Conversions are “mans best friend.” If done by December 31, you have until October 15, 2013 to determine if it was a good move for you. If you decide your tax situation would have been better if you wouldn’t have converted (or only converted a portion) you have the option to undo all (or a portion) of your conversion. We call it the “undo button.”

Do it now and work with your tax preparer after New Years (perhaps after the resolution of the current tax mess) to see if it was a good move. If tax rates go up, it could be a big win!

P.S. Yes…that is my dog, Twix, in Minnie Mouse ears!

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