With the TCJA expiring in 2026, there is a lot of buzz and rules of thumb about Roth strategies, but very little discussion on what the fiduciary-level analysis methodology should be. This course will provide insights on creating and evaluating an analysis and recommendations with targeted vetting questions. Rules of thumb can sometimes be detrimental, causing families to pay much more in taxes over their lifetimes than necessary. A very significant portion of the population is prevented from executing a straight-forward Roth Contribution due to the income restrictions. What was once a risky way to thwart that rule has now become accepted, and many clients can benefit. These contributions should typically take precedence to saving to a brokerage/taxable account, but there are some steps that need to be addressed to prevent unwanted taxation. In addition, you'll learn about the mega-backdoor Roth. SECURE 2.0 includes many new rules, and some of them address Roth IRA/401k. We'll cover these and how they can help your clients.
Learning Objectives
- Determine how to execute and audit an analysis on Roth conversions and Roth 401k/IRA vs. Traditional
- Identify errors in analysis and recommendations
- Understand and apply the Backdoor (and Mega Backdoor) Roth, and how Secure 2.0 affects Roth IRA/401k strategies
Major Topics
- Why Roth-related Rules of Thumb can be flawed
- Questions you can use to evaluate recommendations
- SECURE 2.0 changes related to Roth IRA / Roth 401k
- Backdoor and Mega-Backdoor Roth
