Is Your ROTH Conversion Strategy Still Valid After OBBBA?

In this episode of the Planned Solutions Podcast, we discuss several new tax deductions available in 2025. In addition, the qualifications and income limits for some existing tax deductions have changed. With so much change, it can be beneficial to review a summary of some of the deductions that may be available and the requirements to be able to qualify for the tax benefit. The increased tax deduction for taxpayers over age 65 under the One Big Beautiful Bill Act may create a reason to rethink Roth IRA conversions. The added deduction could cause taxpayers to have more room in lower tax brackets to add income through a Roth conversion that will be taxed at lower tax rates. However, the math is complicated, so it is advisable to consult a tax professional before committing to a strategy. Restricted Stock Units (RSUs) are a common form of employee compensation in some industries. Under these plans, employees receive shares of stock as part of their overall compensation. The value of the shares when they vest is then taxable to the employee and is subject to income tax withholding, as well as Social Security and Medicare tax withholding. The shares sold to cover these taxes must be reported on the employee’s income tax return. Plus, a look at the Planned Solutions Incorporated Office Bulletin Board - Non-retirement Form 1099s are often delayed or, if issued on time, subject to later corrections. According to Schwab, this year, the final batch of 1099s was due to be posted by the end of February. Therefore, the most current forms now available should be the final 1099s and can be used to file 2025 income tax returns with little risk of a correction that may require an amended tax return. The markets have already reacted to the recently initiated military activity in Iran. The impact has been felt in the currency markets, commodity markets, and stock markets. While it is still too early to know the overall impact that this increased instability in the Middle East will have on the markets in the longer-term, we have risk management tools in place that are specifically designed to address this type of uncertainty. We will continue to monitor developments closely and make investment changes based on these developments should they become warranted. To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast), please e-mail ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠⁠⁠⁠ ⁠⁠⁠ ⁠⁠ ⁠ Planned Solutions, Inc.ADDRESS: 1130 Iron Point Road, Suite 170, Folsom, CA 95630 PHONE: ⁠(916) 361-0100⁠ or ⁠(800) 750-2111⁠E-MAIL: ⁠⁠[email protected]⁠m⁠ FAX: (916) 361-0191WEBSITE:⁠www.PlannedSolutions.com