Should you convert a traditional IRA into a roth IRA
Beginning this year, people can convert all or a portion of their traditional IRA balances into Roth IRAs. Although this new allowance for conversions applies explicitly to traditional IRAs, it also applies indirectly to balances in 401(k) plans that workers hold with former employers. These old 401(k) balances can be rolled over, with no penalty, into traditional IRA accounts, which in turn can be converted to Roth IRAs.
How Social Security Coordination Can Add Value to a Tax-Efficient Withdrawal Strategy
This study describes a tax-efficient withdrawal strategy that can add substantial value to many clients of financial advisors with financial portfolios worth up to $2 million. In early retirement years, these households can delay the start of their Social Security benefits and make Roth conversions to fill relatively low tax brackets, which are generally also their marginal tax rates. Once Social Security benefits begin, they can make tax-free Roth withdrawals to minimize the amount of tax-deferred account (e.g., 401(k)) withdrawals that are taxed at 185% of their tax bracket, due to the taxation of Social Security benefits. With a series of cases, we show that a financial advisor can add substantial value to many of their clients’ financial portfolios by recommending such a withdrawal strategy. Key Findings • Due to the taxation of Social Security benefits, there is a wide range of income where a household will have a marginal tax rate of 150% or 185% of their tax bracket, where marginal tax rate denotes the additional taxes paid on the next dollar of income. • This study presents a general tax-efficient withdrawal strategy that will help many singles and married couples with financial portfolios worth up to $2 million substantially reduce the present value of their lifetime income taxes. In addition, these withdrawal strategies can greatly reduce the percentage of these households’ lifetime Social Security benefits that will be taxable. • In the general tax-efficient withdrawal strategies, in early retirement years, these households should delay the start of their Social Security benefits and make Roth conversions to fill relatively low tax brackets, which are generally also their marginal tax rates. Once Social Security benefits begin, they can make tax-free Roth withdrawals to minimize the amount of tax-deferred account (e.g., 401(k)) withdrawals that are taxed at 185% of their tax bracket, due to the taxation of Social Security benefits.
The National PKI of Peru: a new certification hierarchy
In order to guarantee secure transactions through the Internet and to generate strong evidence that could be used in case of future legal disputes, several countries around the world have promoted and regulated the use of digital signatures based on Public Key Infrastructure (PKI). However, despite the high expectations, its implementation has achieved neither the desired results nor its globalization. Many of the reasons were discovered years ago, but they are still open problems for the scientific community nowadays. In order to consider the case of the national PKI of the Peruvian state as empirical evidence for studies that address the open problems, this article describes the details about a new certification hierarchy which is expected to overcome some of its predecessors’ limitations. It is also expected that the information disclosed in this article could be useful to other countries for making a preliminary assessment for possible cross-border recognition of Peruvian digital signatures.