KHTS Radio Santa Clarita Radio – Santa Clarita News
Hosts: Arif Halaby & Jeff Girard
Topic: Roth Conversions And State Income Tax
Total Financial Solutions Safer Money Hour – August 22, 2017
“Your education–your financial education, it’s called literacy.”
How to ensure Roth conversions are done right:
Always have a Certified Public Accountant
Always have a team of professionals for a “combination approach”
Roth Conversions
When you convert from a Traditional IRA to a Roth IRA you pay income tax on the contributions. The taxable amount that is converted is added to your income taxes and your regular income rate is applied to your total income.
Limits – There’s no limit on the amount you can roll to a Roth from another retirement account. However, a Roth rollover is a taxable event. Traditional IRAs, 401k plans, 403b plans and 457 plans are typically composed of pretax dollars. Roth IRA contributions come from after-tax dollars.
Deadlines – The conversion is reported on Form 8606, Non-deductible IRAs. Traditional IRA funds can be converted to Roth status. There is no limit to the amount that can be converted; however, the amount converted is added to your ordinary income for that tax year. The Traditional to Roth Conversion deadline is Dec. 31.
“Your family’s life, it’s financial life, depends on your knowledge.” – Arif Halaby
Social Security
“Social security used to be just a small part, to keep you from becoming poor.” – Arif Halaby
How do you build and protect your social security, so that you don’t lose it?
“Look at putting the control back in your hands, whether its moving money over to the Roth side … and setting yourself up with post-tax dollars, I think, is the way to do it.” – Jeff Girard
More on Arif and Total Financial Solutions:
Arif M Halaby has dedicated his life to protecting people. He has transitioned from nearly 11 years of service with the Los Angeles Police Department to helping people protect and preserve their hard-earned assets through his financial services company, Total Financial Solutions, Inc.
Arif Halaby – Host of Total Financial Solutions Safer Money Hour
Arif’s focus and mission is to help people save money, get out of debt, and prepare for retirement.
Arif has helped families with retirement income planning since 1996 and is President and CEO of Total Financial Solutions, Inc.
He is insurance licensed in 14 states and specializes in retirement strategies.
He also holds the designation of CEP as a Certified Estate Planner in CA.
His passion for education resulted in the formation of Total Money School in 2002. He has taught financial principles as a guest speaker throughout the community at various schools, PTA events, and numerous companies through Total Money School’s Lunch-n-Learn program.
