Requirements
Microsoft Windows
Price
$149 (+$7S/H)
Overview
SHOULD YOUR CLIENTS CONVERT THEIR IRAS
TO ROTH IRAS?
SHOULD YOUR CLIENTS MAKE ROTH IRA
CONTRIBUTIONS?
The answer is maybe. It depends on the
circumstances. If you listen to some people, it is an open and shut case. Yes,
you will almost always see a better cashflow with a Roth IRA than a regular IRA. If
you dont look at the time value of money, the Roth IRA
always is better.
The situation changes when you consider the time
value of money. Some of your clients will be better off with Roth IRAs. But, many of
your clients will be worse off with Roth IRAs.
If you crank out the analysis yourself, you will
spend several hours to do the over 700 calculations.
Better yet, you can use the DTS Roth IRA
Analyzer to determine whether your client should do a Roth conversion or contribute to a Roth IRA.
Let the DTS Roth IRA Analyzer make the 700 calculations for you. In seconds
the DTS Roth IRA Analyzer will give you your answer that would take hours to do by hand.
The program will compute all after - tax
cashflows for the traditional IRA and Roth IRAs. Those cashflows will be discounted back to
the current year to properly compare the alternatives.
If your client is better off with a Roth
conversion, your client will want to know why it is so worthwhile to pull existing funds out
of IRAs and pay tax on that money over four years. What is that tax money going to?
Is it really worth it? The DTS Roth IRA Analyzer's reports will clearly present to
your client why or why not a Roth IRA makes any sense.
If your client listens to the
"experts," the question may come up why you did not recommend a Roth IRA.
You can use this program to prove the "experts" wrong. For comprehensive
information, check out manual.
What's New
Roth IRA Vs Regular IRA Analyzer
Conversion Tax Paid Out Of IRA Funds
The program gives you the option to have the rollover
tax paid out of the taxpayers personal funds or out of IRA funds. With the prior
version, if the conversion tax is to be paid out of IRA funds, the program used Roth IRA
funds. The new version of the program uses regular IRA funds rather than Roth IRA funds.
Retaining funds in the traditional IRA to pay the conversion tax presents a problem, "How
much do I need to keep in the regular IRA to pay the rollover tax, the tax on the IRA
distribution and any early withdrawal penalties?" The DTS Roth Vs Regular IRA
Calculator answers this question for you. Go ahead. Try to make this calculation with pencil
and paper. It is not a lot of fun.
With this feature the program, can not only be used to
decide whether your client should invest in a Roth, but also how much needs to stay in a
regular IRA.
Option To Not Make Distributions From A Roth IRA
Traditional IRAs have a minimum distribution
requirement when the IRA owner is over 70˝. There is no similar requirement
for Roth IRAs. Now the DTS Roth Vs Regular IRA Analyzer gives you the choice
to see what happens if no funds are distributed from the Roth IRA.
The Program Works For Nondeductible IRAs
The prior version assumed that the
traditional IRA had no
nondeductible amounts rolled into the Roth IRA. The new version lets you indicate how
much, if any, of the conversion funds came from nondeductible IRAs. Nondeductible IRAs are
not subject to the rollover tax. Also, when the nondeductible IRA is distributed in the
regular IRA scenario that nondeductible portion, which the program calculates for you, is
not subject to tax.
Income In Respect Of Decedent (IRD)
The program computes the tax consequences to
beneficiaries after the death of the IRA owner. For the Traditional IRA
scenario this includes the tax consequences of both IRD and the IRD
deduction.
Details
Purpose
Determine whether your clients are better off
converting their
traditional IRAs into Roth IRAs.
Determine whether your clients are better off making annual
contributions to regular IRAs or Roth IRAs.
Reports
Roth IRA Cashflows
This report presents the cashflows
related to the Roth IRA. Cashflows are totaled and Net Present Value is computed.
Regular IRA Cashflows
This report presents the cashflows
related to the Traditional IRA. Cashflows are totaled and Net Present Value is computed.
Summary
This report compares the
Net Present Values and total cashflows of the Roth to the regular
IRAs. The Cost or Benefit for using the Roth IRA is summarized for both cashflows
and Net Present Value.
Inputs
General
Name of IRA Owner.
Optional Second Line.
IRA Owner's Birthday.
Spouse's Birthday.
Cost Of Capital.
Contributions
Conversion Vs. Annual.
Contribution Type.
Rollover Year.
Conversion Amount.
Annual Contribution Amount.
Start of Annual Contribution.
Stop of Annual Contribution
Rate Of Return On Investment. |
Distributions
Year Of Retirement.
Whether Distributions Will Be Fixed Years Or Fixed After - Tax Dollars.
Number Of Years.
After - Tax Annual Distributions.
Tax Information
Year Of Estate Tax Payment.
Pre - Retirement Tax Rate.
Retirement Tax Rate.
Estate Tax Rate.
Beneficiary's Tax Rate. |
Assumptions
Minimum distribution requirements
are met. IRA funds, if still available at death, are distributed immediately after death.
Also see our Frequently Asked Questions page.
Current Version
Current Calculator Version
As of January 11, 2011 we started shipping the version RTH2011.10. This version
eliminates the 2 year spread for the conversion tax that was allowed for 2010
conversions, but not for after 2010.
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