Roth IRA Analyzer

Contents

Requirements
Price
Overview
What's New
Purpose
Reports
Inputs
Updates

Requirements

Microsoft Windows 3.1x, Windows 95/98/2000/XP/Vista.

Price

$59 (+$7S/H)

Overview

SHOULD YOUR CLIENTS ROLLOVER 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 don’t 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 rollover 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 regular 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 rollover, 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 Vs Regular IRA Analyzer – New Features Version RTH98.1

Rollover Tax Paid Out Of IRA Funds

The IRS Restructuring and Reform law plugs the penalty free early withdrawal loophole. Before this technical correction, a person who is not year 59˝ years old could rollover regular IRA funds to a Roth and withdraw those funds from the Roth without the 10% early withdrawal penalty. Now it is clear that a Roth IRA cannot be used to avoid the 10% penalty.

The program gives you the option to have the rollover tax paid out of the taxpayer’s personal funds or out of IRA funds. With the prior version, if the rollover 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 regular IRA to pay the rollover 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 Analyzer 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

Regular 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 regular IRA had no nondeductible amounts rolled into the Roth IRA. The new version lets you indicate how much, if any, of the rollover 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.

Elect Out Of 4 Year Averaging

The IRS Restructuring and Reform gives the taxpayer the option to elect out of spreading the 1998 rollover income over four years. The program now gives you the option to have all of the 1998 rollover income taxed in 1998.

Frequently Asked Questions (FAQ) for the Roth Vs Regular IRA Analyzer