Stock Market Volatility
Can Cut Tax on a Roth IRA Conversion
year's stock market volatility can be unnerving, but if you
have a traditional IRA, this volatility may provide a valuable
It can allow you to convert your traditional IRA to a Roth IRA
at a lower tax cost.
Contributions to a traditional IRA may be deductible,
depending on your modified adjusted gross income (MAGI) and
whether you participate in a qualified retirement plan, such
as a 401(k). Funds in the account can grow tax-deferred.
On the downside, you generally must pay income tax on
withdrawals, and, with only a few exceptions, you'll face a
penalty if you withdraw funds before age 59½ — and an even
larger penalty if you don't take your required minimum
distributions (RMDs) after age 70½.
Roth IRA contributions, on the other hand, are never
deductible. But withdrawals — including earnings — are
tax-free as long as you're age 59½ or older and the account
has been open at least five years. In addition, you're allowed
to withdraw contributions at any time tax- and penalty-free.
There are also estate planning advantages to a Roth IRA. No
RMD rules apply, so you can leave funds growing tax-free for
as long as you wish. Then distributions to whoever inherits
your Roth IRA will be income-tax-free as well.
The ability to contribute to a Roth IRA, however, is subject
to limits based on your MAGI. Fortunately, anyone is eligible
to convert a traditional IRA to a Roth. The catch? You'll have
to pay income tax on the amount you convert.
This is where the "benefit" of stock market volatility comes
in. If your traditional IRA has lost value, converting to a
Roth now rather than later will minimize your tax hit. Plus,
you'll avoid tax on future appreciation when the market
Of course, there are more ins and outs of IRAs that need to be
considered before executing a Roth IRA conversion. If your
interest is piqued, discuss with us whether a conversion is
right for you. Call us at
SMEED CPA Adds Financial
Services To Help Clients With
Investments & Insurance
often we here at SMEED CPA are asked about financial issues
that impact our clients investments and their portfolios.
We always offered our opinion and suggestions but in order to
help our clients actually execute the changes we suggest,
SMEED has created a Financial Services division.
SMEED Financial Services, Inc. will be able to
work with both individual and business clients on their
investment portfolios and manage assets on their behalf.
SMEED Financial will include Michael Uadiale,
ACA, CPA, CGMA; and Pablo Blanco who has
recently joined SMEED and comes with over 18 years of
financial sales and advising experience with affluent
Watch your inbox and mail boxes for more specific information
on services SMEED Financial Services, Inc will make available
Would You Give Me Your
Feedback & Testimonial
on Our Hotline?
Hello it’s Michael Uadiale, CPA of
SMEED CPA Inc. We’ve just installed a toll-free
number that I would like for you to call and tell me how you
think we are doing as your CPA firm.
Just dial 800-609-9006
extension 3638 and follow the instructions. If we’ve
done a good job please let me know. And if we can
improve on anything, please mention that too.
Us Be Found on
Also as we expand our business,
we find more and more people are using
YELP and Google
to look for us by searching Brentwood accountant or
When they do this we want to
be FOUND on GOOGLE. One way you can help us
is to give us an
ONLINE REVIEW on our Google Maps/Places listing --->
or on our YELP local listing
click here to go to our Google Listing for SMEED CPA and
click on the
YELP link to go there.
Scroll down to the Review area.
On either site it may say: Been here?
Rate and review
You will click on the Rate and
review link and then log in, then
give us a review!
You can choose between 1 and 5
STARS and write in what you think about the tax or accounting
work we have done for you.
It's that simple. Thank
you in advance for your help and cooperation!
As always you can call our offices if you have any
questions about these or any other accounting related issues, at
Regards, Michael Uadiale, CPA,
Managing Partner, SMEED CPA,