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Roth IRA Conversion Strategies

Today we will hear from Irene Smith, a Certified Divorce Financial Analyst and an affiliate of The Law Collaborative. Irene is a member of the Institute of Divorce Financial Analysts and the Los Angeles Collaborative Family Law Association. She served on the board of the American Women Society of Certified Public Accounts – Los Angeles Chapter, and was the scholarship committee chairperson for the Chapter. She is a frequent speaker on the subjects of financial planning, risk management and financial fitness strategies for women. She holds the designations of Certified Divorce Financial Analyst™, Certified Financial Planner® and Certified Public Accountant. You can visit Irene’s website at www.SmithFinancialManagement.com.

Sincerely,
Ron and Robert

Roth IRA Conversion Strategies

Traditional IRAs offer some great advantages, such as tax-deductible contributions and tax-deferred growth. However, with tax-free growth of earnings, tax-free qualified withdrawals and no required minimum distributions for original account owners, Roth IRAs offer remarkable benefits.

Beginning in 2010, the modified adjusted gross income limit for ROTH IRA conversions no longer applies. To help relieve tax liabilities on IRA conversions, investors who convert in 2010 have the unique opportunity to pay the taxes on conversion with their 2010 income tax return or elect to pay the taxes over the following two years, 2011 and 2012.

If no withdrawal is needed from a retirement account, Roth IRA conversion can transform the account from a retirement vehicle to a wealth transfer tool. Since there are no required minimum distributions (RMD) with Roth IRAs, the account can continue to grow tax free throughout your retirement. Eventually, you can pass it on to your beneficiaries, giving them growth potential and tax-free access to this portion of their inheritance. They will need to take RMDs, but the RMDs will be income tax-free.

Another strategy may apply if you have experienced a loss in the value of your qualified retirement plan or traditional IRA. You could convert the account to a Roth IRA while the markets are down, and pay taxes with non-retirement funds. As the markets recover, the recovered investment loss and any additional investment growth would be tax free, as would any qualified distributions you choose to take in retirement.

Now is the time to talk to your tax and financial advisor to formulate a game plan.

Irene Smith

To contact Irene, email her at Irene.Smith@InvestmentCenters.com

One week from this Saturday!

All divorces have three divorces: The Legal Divorce, The Financial Divorce and The Emotional Divorce. Come learn how to handle all three at The Law Collaborative’s Second Saturday Divorce Workshop, Saturday, August 14, 2010.

How much support can I get?

Part Two of the discussion launched in last month’s newsletter, the calculation of parental Child Custody time, begins with an important first step: determine the average weekly time that your child spends in your care. Use the information from last month to calculate the specific hours. There are 168 hours in each week, 7 days at 24 hours each. There are 52 weeks in each year. 168 x 52 = 8736. Next, add holidays, and those Mondays or Fridays that extend your weeks or weekends (such as Memorial Day). Then calculate vacation time, birthdays, and special days like Mother’s Day or Father’s Day.  Don’t forget to account for school closure days and other such events. Total these figures and you should have an accurate estimation of your time/custody percentage. Be certain of your numbers, since miscalculation may cost you additional negotiation, litigation and/or child support payments. If in doubt, review the calculations with your attorney or the paralegal in charge of your case.

Summer is officially here, and with it our next Second Saturday Divorce Workshop, which will take place on July 10th at our Woodland Hills Office. California Certified Family Law Specialist, Ronald Supancic, of The Law Collaborative, will address the legal issues in divorce. Irene Smith, Certified Divorce Financial Analyst, will discuss the financial issues associated with divorce. Christine Campisi, Court Mediator, will speak regarding childrens issues in divorce situations. This workshop is beneficial to anyone contemplating divorce, or curious about their options. Pre-registration is $45, or $50 at the door. Breakfast will be served. Please call our office at (888) 852-9961, for registration and additional information, or email IG@TheLawCollaborative.com.

Visit Ron and Robert on Divorce on iTunes for additional information.

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Be our friend on Facebook: www.Facebook.com/TheLawCollaborative

And please, if you have any questions, give us a call. We are here to serve you. (888) TLC (852) – 9961

Save the Date…

The Second Saturday Divorce Workshop for Women is an excellent way for women who are contemplating divorce or who are in the process of divorce to take control of their lives, learn about their rights, and protect themselves in court.  Speaking at the event will be attorney Robert Borsky, Certified Divorce Financial Analyst Irene Smith and licensed marriage and family therapist Rosalinda O’Neill.

About Robert Borsky
Robert Borsky has been practicing law since 1981. He limited his practice to Family Law from 1984 through 2001, taking occasional special cases referred by Judges. During this time, he spent four years on the exclusive Gang Intervention Task Force, representing juveniles. From 2001 to 2006, Robert also practiced insurance defense and Workers’ Compensation Law while maintaining his family law practice. Robert Borsky has served as a mediator, arbitrator and Judge pro tem for the Los Angeles Superior Court since 1986. He is a member of the Los Angeles, Beverly Hills, and San Fernando Valley Bar Associations. Robert served as President of the Long Beach Bar Association, Family Law Section, 1994-1995 session, and is a past Co-Chair of the California State Child Custody Committee. As an advisor to the Superior Court, he received the first ‘Judge William McFadden Award,’ for his contribution in assembling the first Master List of qualified Child Custody Evaluators, Protocols and Evaluator Retainers. Robert taught college level courses at USC Law School from 1990 to 1998, and has been a guest speaker at State Bar functions, and local County and City functions. Robert has spoken frequently on local radio stations, and has written numerous articles for the bench and bar. Click here to read more about Robert Borsky.

About Irene Smith
Irene Smith holds the designations of Certified Divorce Financial Analyst™, Certified Financial Planner® and Certified Public Accountant. Irene obtained her Bachelor of Science degree in Accounting from California State University, Northridge and her MBA degree in Finance from the Wharton School at the University of Pennsylvania. Before starting her financial planning practice in 2001, Irene had an extensive corporate career and developed expertise in the fields of taxation, finance and real estate. After experiencing the impact divorces had on the lives of her family and friends, she decided to obtain additional training as a Certified Divorce Financial Analyst (CDFA) to help divorcing individuals make better informed financial decisions. As a CDFA, Irene analyzes the financial issues of a divorce and informs clients about the long-term effect of financial decisions made today. She can help clients avoid the common pitfalls of divorce by evaluating the tax implications of dividing property and the financial impact of various settlement options.  Click here to read more about Irene Smith.

About Rosalinda O’Neill
Rosalinda O”Neill holds a bachelor’s degree in finance from the University of Miami and a master’s in counseling psychology from Loyola Marymount University in Los Angeles. She is a California Licensed Marriage Family Therapist with expertise in addiction, conflict resolution, partner dynamics, relationship, trauma and achieving success. Rosalinda has over 30 years of high level corporate experience. Rosalinda is President and founder of CEO LifeMentor®, Inc since 1984. She is a member of the Physicians’ Diversion Evaluation Committee of the Medical Board of California. Her non-profit leadership involvement includes Rotary International and Rotary Club of Beverly Hills, City of Hope Board of Governors and the American Heart Association, Ventura Division.  Click here to read more about Rosalinda O’Neill.

What women need to know about divorce

The Second Saturday workshop was developed by WIFE, the Women’s Institute for Financial Education, founded in 1988. It is their mission is to empower women to succeed and prosper.  WIFE is dedicated to providing women with information and education during life transitions and their quest for financial independence.

The Second Saturday Workshop is held the second Saturday of each month, and is designed to help divorced and divorcing women take the next step in their life, no matter where they are in the process of untying the knot.  The workshop deals with the legal, financial, family and personal issues of divorce in a logical, yet compassionate way.  With the guidance of trained professionals, workshop participants gain greater understanding of the confusing divorce process.

Second Saturday is a great opportunity for women anywhere in the divorce process. The next Second Saturday workshop is scheduled for Saturday, June 12, from 8:30 a.m. to 1:00 p.m.  Speakers will include attorney Robert Borsky, Certified Divorce Financial Analyst Irene Smith and marriage and family therapist Rosalinda O’Neill.  To register for the event, or if you’d like more information, email Info@TheLawCollaborative.com.

Second Saturday Workshop at TLC

The Law Collaborative
Second Saturday Workshop
Saturday, May 8th
8:00 am – 1:00 pm
5959 Topanga Canyon Blvd. Suite 375
Woodland Hills, CA 91367

Ron Supancic, CFLS will be discussing:
*Collaborative Law
*The divorce process and fees
*Protecting yourself
*Child Custody
*Spousal and child support

Presenters include: Renee Leff, LMFT & Irene Smith, CDFA

Registration Admission:
$50.00 charge at the door
$45.00 pre-paid

What experts are involved in the collaborative process?

Ron Supancic answers that very question in this short informational video.