For 401(k) plan participants seeking information about
Roth IRAs and Roth IRA conversion as part of their overall retirement savings
strategy, Schwab has added an online Roth IRA conversion workshop to its
Financial Education Center for participants. The online workshop, which is
broken up into short topical segments, is designed to give 401(k) plan
participants clear guidelines and easy-to-understand information that will help
them determine if converting to a Roth IRA is right for them, according to a
press release.
For investors, Schwab has recently launched an Online
Quick Assessment in which investors can answer a few brief questions on current
retirement accounts, expected time horizon to retirement, estate plans, and
conversion taxes, and receive tailored next steps to further explore if a Roth
IRA conversion is appropriate. The tool also pops up useful tips and
explanations during the process to help people understand the considerations
and rules around conversion.
Schwab has also produced a Webcast entitled Roth Conversion – Is it Right for You?
featuring Mark Riepe, CFA, senior vice president at the Schwab Center for
Financial Research, explaining Roth IRA fundamentals. The Webcast, available at
http://www.schwab.com/rothvideo, covers
Roth IRA basics, the differences between traditional and Roth IRAs, the
benefits of Roth IRAs, when conversion may and may not make sense, when a
partial conversion might be the right choice, and where to find help at Schwab.
In addition, Schwab has launched a series of short videos
addressing investors’ common questions about Roth IRAs and Roth IRA conversion,
including how a Roth IRA can help with estate planning, the benefits that may
be available when converting to a Roth IRA, and some of the potential tax
implications of a Roth IRA conversion.
For its independent investment adviser clients, Schwab
has created a Roth Decision Guide designed to help advisers guide their clients
through a thoughtful consideration of the costs and benefits of conversion. The
guide can help advisers answer initial questions their clients might have, such
as the benefits of a Roth IRA and details about the conversion rule change.
A Roth Decision Matrix helps advisers discuss key
considerations with their clients that can influence the decision to convert
and how much to convert. Some of the key considerations in the guide include
expected future tax rates, a client’s time horizon to retirement, the client’s
ability to pay taxes from a non-IRA account, impact on a client’s current tax
bracket, and the client’s estate planning needs.
As part of the Roth Decision Guide for independent advisers,
Schwab also has a Roth conversion calculator that enables advisers to provide
their clients with a comparison of Roth IRA and traditional IRA ending values,
estimated taxes due from the conversion, and suggested next steps.
Advisers can also access online a Webcast that addresses
factors for advisers to consider before recommending a conversion, using a Roth
conversion as an estate planning tactic, and whether a partial conversion may
be a better option for some clients.
Schwab is also making available for independent adviser
clients a Roth conversion FAQ and an archive of articles discussing various
topics related to Roth conversion to help advisers prepare for discussions with
their clients.
Schwab's Roth
IRA resources are available at http://www.schwab.com/roth.