CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Trevor A. Farrington, LUTCF®, RICP®
Regional Vice President
Financial Advisor
Equitable Advisors, LLC
93 Worcester Street, Suite 103
Wellesley, MA 02481
Phone: 617-407-2684
July/August 2025
Make a Roth IRA Conversion
If you're nearing or in retirement and concerned about paying too much in taxes, you may want to convert a portion or all of your taxable retirement plan assets to a tax-free Roth IRA*. Here's how it works.
Overcoming Obstacles
A major concern for many people considering a Roth conversion is their tax bill. The amount you convert from a tax-deferred retirement plan, such as a 401(k) or a traditional IRA, is considered a distribution and is added to your taxable income in the year you convert. This can create a larger tax bill than expected and potentially move you into higher income tax brackets.If you're nearing retirement but still working, the extra income can also cause you to become ineligible for current contributions to an existing Roth IRA. In 2025, contribution amounts begin to be limited when modified adjusted income hits $236,000 and phase out completely at $246,000 for taxpayers who are married and filing jointly. Limits for single and head of household filers phase out between $146,000 and $165,000.** But you do have alternative ways to save if that's the case.
Little by Little
Consider converting portions of tax-deferred retirement account assets in order to meet the income qualifications and keep your Roth IRA contribution eligibility. In this way, you spread out the conversion tax bill over time. If you were still working in 2024, you can contribute up to $7,000 to an IRA. If you're at least age 50, you can add another $1,000 in catch-up contributions.Unlike traditional retirement accounts, the Roth IRA is not subject to what's known as required minimum distributions (RMDs), so, you needn't take a Roth distribution in your lifetime. Your financial professional can tell you more.
* Converting from a traditional IRA to a Roth IRA is a taxable event. A Roth IRA offers tax free withdrawals on taxed contributions. To qualify for the tax-free and penalty-free withdrawal of earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59ó or due to death, disability, or a first-time home purchase (up to a $10,000 lifetime maximum). Roth IRA distributions may be subject to state taxes.
**IRS.gov
GE-7839670.1(4/25)(Exp4/29)
Duly registered and licensed financial professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN), offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor, and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of Utah, LLC in Ut; Equitable Network of Puerto Rico, Inc.). Equal Opportunity Employer - M/F/D/V. Equitable Advisors and its associates and affiliates do not provide tax, accounting, or legal adviceor services. Representatives may transact business, which includes offering products and services and/or responding to inquiries, only in state(s) in which they are properly registered and/or licensed. Your connection to this website does not necessarily indicate that the sender is able to transact business in your state. The information in this website is not investment or securities advice and does not constitute an offer. For more information about Equitable Advisors, LLC you may visit https://equitable.com/crs to review the firm's Relationship Summary for Retail Investors and General Conflicts of Interest Disclosure.
GE-6572038.1 (4/24)(Exp. 4/26)
www.equitable.com
Check the background of this investment professional on FINRA's BrokerCheck
Equitable Advisors, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.