Question: Who is the intended audience?
Answer: Any one that wants their investments grows tax-free. For young people whom want to save for emergency need or college, or older people for retirement.
Q: What is the book about?
A: In plain English what a Roth IRA is and who should have one. Also for those who have IRA’s and trying to decide, should they convert their IRA’s into Roth IRA’s in 2010?
Q: Why are you the best person to write this book?
A: I am a practicing CPA and Financial Adviser, who has prepared and reviewed over 400 tax returns per year for the last 25 years.
Q: How is this book different from other books on this topic?
A: What I practice very day on my business is what I recommend in the book. Many others write book based on IRS rules but never fully understand how it works in real life
Q: Is there anything else we should know about this book?
A: There will be a rush for some people to convert their IRA’s into Roth IRA’s in 2010, because the IRS is allowing those with Income (AGI) of over $100,000 to convert in 2010 since they have not been able do that so far.
The big question: is should you convert or not? In order to get to the right answer, you need to know whether it makes sense for you to continue with a tax deferred IRA or convert in 2010 and pay the income taxes then, therefore allowing the earnings to grow tax-free from then on.
I believe that there will be those who should not convert but will. However, some who should convert will not. Why? In my book Roth IRA: Exploding the Myths, I cover some myths, which keep people from contributing or converting into Roth IRA.
What are some of the myths that people have, which keep them from having a Roth IRA or converting to a Roth IRA?
Some believe it’s too good to be true.
Most think a Roth IRA is an investment.
Many think Roth IRA’s are only good for young people.
Others have told them that if they are over 60 years old, they are too old.
Some believe they cannot trust the government to keep its word.
Many think their taxes will go up.
A few think their taxes will go down.
Some say, “I don’t want government to get any of my money now” (even though some people would pay no income tax at the time of conversion).
Some say, “I don’t want to pay tax on it now. If my kids pay more taxes on it, I don’t care; that’s their problem.”
Others have said, “I did a big spreadsheet; it doesn’t make sense to do a Roth IRA conversion.”
Many do not want to do a Roth IRA because they believe that it was their Roth IRA that lost money in the past (although they lost money because of how it was invested, not because it was set up as a Roth IRA).
Many do not want to tie up their money.
Some believe they have to pay tax on it (again).
Once an IRA is converted, it acts like a regular Roth IRA. If you consider doing a Roth IRA conversion, the conversion must be complete before December 31. The tax is due in the year the conversion is completed. To qualify for the conversion, your adjusted gross income (AGI), without counting the Roth IRA conversion and Required Minimum Distribution (RMD) for those over 70 ½ years old from a regular IRA is less than $100,000.
Your AGI is the total of all income less certain adjustments. It is shown on the last line (37) of page one of your Form 1040 tax return. Alternatively, it is on line 21 of page one of Form 1040A. However, the IRS is allowing everyone to convert his or her IRA into a Roth IRA in the year 2010 without the AGI limit. The best part is that you have 2 years to pay the tax on this conversion.
The IRS allows you to reverse the conversion without any tax consequences once per calendar year before the due date of your tax return, plus the maximum six-month extension period (whether or not the return is actually extended). This is called a Roth IRA recharacterization. For example, the deadline to recharacterize a 2010 Roth conversion is October 15, 2011.
You may ask, “Why should I convert my IRA into a Roth IRA and pay tax on it now? Isn’t the biggest reason for investing in an IRA in the first place so that I can defer the tax for as long as possible?” It is true that for many this is not the right thing to do, but there are conditions that may justify converting. I will explain them in the book.
I know there are many opinions on both sides of the suggestions: whether or not to convert some of your IRA into Roth IRA. After listening to many of my clients and others I realized that there are a lot of misunderstandings about Roth IRA’s. For that reason I have written a book about Roth IRA myths called Roth IRA: Exploding the Myths, and To Convert or Not in 2009/2010. I explain in plain English the advantages and disadvantages of a Roth IRA and who should have a Roth IRA or convert into the Roth IRA.
Visit WWW.WhyRothIRA.Com to get more information. Writing this book has been a family project, as my 19 years old daughter Christina did the illustrations and formatting and my 23-year daughter Jahana helped with the editing the book.