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Brittney Saks, US Personal Financial Services leader for PwC, on how the fiscal cliff is impacting estate and retirement planning.
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-- added tax is with rates on interest on investment income set to go up next year is now -- time to convert a traditional retirement account to a rock fire right.
Joining us now Britney -- a partner in the private company services group at she did you see.
You know a -- people talk about this especially 2010 congress -- the income limitation on this anybody can convert.
And the big -- but the rock is when you withdraw -- basically already paid tax on the money so it grows tax free you pull it out no taxes.
That's right at me or it is something that we have talked about the last couple years but it's getting a lot of attention these days.
Because as potential tax rates may be increasing taxpayers are looking for ways to accelerate in come into 2012.
The rock hiring is a good way to do that people need to understand right -- you know the entire tax bill on your traditional IRA.
This year if you're rolling gas to the extent that it out is all pretax in -- -- be -- -- at this here.
With that and then in exchange.
All of the future earnings the future growth we'll be tax free in the future and -- a five -- -- on this -- that.
Other -- you do need to be careful about it -- -- is not necessarily something a conversion.
If you are looking that you need the money in our next couple years it is something that you wanna not -- And in particular if you're looking to convert to the Roth IRA you wanna use money to pay the taxes outside area -- great estate planning tool is -- Absolutely if it's a wonderful estate planning -- if you weren't if you don't need the money it's not something you do need -- retirement you can allow it to grow for decades and then give it.
To the next general your heirs get a tax free which is that's right mom.
Do you think about it -- What let's talk about capital gains -- this is a big issue for a lot of people to.
What about moving capital gains generating stock David -- -- producing stocks into a retirement account is it worth.
Selling and buying back you know a lot of people think about that an absolutely it is worth considering should be talking with your -- advisors to think.
Where should your assets beast inside an IRA are out there right Tara and her outside because the thing about qualified retirement account.
The other you don't pay capital gains -- goes by some accounts you only pay tax when you take the money out.
In a retirement so it's worth discussing you and I were talking a break about the Alternative Minimum Tax tax -- that's right editor bill about it.
There's another like sixty some -- -- credits and deductions that are due to expire at the end of the year we haven't heard anything about this had yield.
You know today's -- that we know is that if there is no legislative action there are a heck of a lot of I'm income deduction rate changes that are happening starting the beginning of 2013.
How we can go with that is what what you know right now on plan for -- that AMT patch could affect anywhere from -- 27 to thirty million asked well.
-- guys get -- stupid Brady -- -- -- thank you thank you better thank you.
The advice.
All right guess what Cheryl Casone re taking through the last hour they have don't have -- claimants.
101 -- -- -- Dow Chemical chairman and CE.
