In the video, watch a walk-through of the Roth Conversion insight available in the US version of the Voyant software.
Transcript
In today’s video, we will be walking through how to use the Roth Conversion Insight from the dashboard in your client’s plan.
Start by navigating to the Insights section, then scroll down to Roth Conversion Insight.
Once you’ve opened the Insight, you’ll be able to review all of your clients’ 401(k)s or any other assets that qualify for a Roth conversion.
In this example, we’ll look at Jane’s 401(k). Select the 401(k) and leave the software’s default setting of pay taxes on converted funds as it is. Next, set a conversion age for when you want the conversion to occur, and choose to convert evenly over a specified number of years.
You can also choose to convert only within selected tax brackets. For this example, we’ll use all available funds and convert them over the course of 3 years.
Once you’ve set up the conversion, click Get Started. The software will then produce a version of your client’s plan with the Roth conversion applied. You can see the conversion occurring at age 60 over 3 years, demonstrated by a tax spike in those years.
You can compare this to your base plan. Look at the cumulative taxes in the two plans: in the Roth conversion plan, the estimated cumulative tax outcome is lower.
You’ll also see results summarized below, including:
Total estimated tax savings (around $97,000)
Additional estate left to heirs
Amount left in tax-free accounts
Future shortfalls prevented
Required minimum distributions avoided
This data can help you discuss the benefits of this strategy with your client.
If you decide to implement this strategy, simply click Generate Plan from Results, give the plan a name, and it will be created in your Voyant account. This plan will now be available as one of the options you can present to your client.
I hope this was helpful! If you have any questions, you can click the client name in the top left, select Request Support, enter your question, and share client access.