Phil Cannella – Phillip Cannella News: Every week, Phil Cannella extols the virtues of Roth IRAs at his Crash Proof Retirement™ Educational Events. Phil Cannella notes that their value hinges on impending tax rate changes that may substantially upend retirees’ accounts in the future. If retirees don’t act now, he warns, the government could choose to become a ‘senior partner’ in their IRA accounts by increasing taxes at a moment’s notice.
Phil Cannella wants you to know – this is completely avoidable. With a Roth conversion, your IRA can be moved to a tax-free status by opting to give the government the portion of your IRA account that would be taxed away anyway. By doing this, you ‘lock in’ a tax free status on the IRA, and in effect take full ownership of your account. Phil Cannella makes an analogy to a bucket of apples; that by takes the rotten ones out, you spare the good ones still there. This relevant analogy ‘brings it home’ for the audience of retirees: the time to act is now.