Rebecca Dawson

Retirement, Investing, Taxes
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“Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country.”
Firm:

Silber Bennett Financial

Job Title:

Senior Vice-President

Biography:

Rebecca Dawson is an experienced, independent financial advisor offering personalized wealth and investment management guidance to a select group of individuals, families, and businesses in Southern California and around the country. Her mission is to be a trusted advisor to her clients by partnering with them to identify what is most important in their financial lives while providing tailored solutions to help achieve their goals.

For over 20 years, Rebecca has served as a financial advisor. She has developed highly refined methods for evaluating client's needs and formulating successful investment strategies. She and her staff provide an exceptional level of service to her clients, who are typically worth well in excess of $1 million and include some of the most prominent people in the United States.

Before joining Silber Bennett, Rebecca managed her own independent brokerage office since 1999. Prior to that she held similar positions with PaineWebber, Merrill Lynch, and Alex.Brown & Sons.

Her clientele have included corporate presidents, and officers, charitable foundations, pension funds, business owners, and wealthy retirees. Her affiliation with Silber Bennett Financial provides her clients with full service wealth strategies.

Education:

BA, Liberal Arts, University of Texas at Austin

Disclaimer:

SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SILBER BENNETT FINANCIAL, INC.

DOI: CA 0H72697  |  MEMBER: FINRA / SIPC

Videos
  • Why Choose Rebecca Dawson
  • Rebecca Dawson on To The Point
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May 2017
    Retirement Plans, Retirement Savings, Taxes, IRAs
April 2017
    ETFs, Financial Planning, Investing, Mutual Funds
May 2017
    Income Tax, IRAs, Retirement Savings
March 2017
    IRAs, Retirement Savings, Tax Deductions / Credits, Real Estate
May 2017

All Answers
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    Investing, 401(k), IRAs
If investments in a 401(k) have lost money, can you use the current value to convert to a Roth?
100% of people found this answer helpful

Converting your 401(k) retirement account to a Roth IRA when the value of your investments are down is a compelling tax strategy since you will only pay taxes on the current value.  Although there are some restrictions:

  • You must be separated from your employer to roll your 401(k) into a Roth IRA. You may not do this if you are still working for the same company and/or employer, unless you’re already older than 59.5.
  • Prior to January 2008, you weren’t able to roll your 401(k) into a Roth IRA. If you wanted to do so you had to open a traditional IRA then convert the traditional IRA to a Roth IRA. It all depends on your plan administrator.

Currently, most anyone can take all of their traditional IRAs and retirement plans and convert them to a Roth IRA. The amount you convert will be taxed.

You will want to do a rollover and not a distribution, otherwise your 401(k) provider will send you a distribution check from your 401(k), then they will hold around 20% for taxes. If you prefer a direct 401(k) rollover to a Roth IRA, you will want to indicate that you want a rollover and provide all the appropriate forms. If you do receive a distribution check, you will have 60 days to redeposit the check back into an IRA or convert to a Roth IRA.

If you employer offers a Roth 401(k), the rollover will be much easier. When you are converting one Roth product to another, there is simply no need for a conversion. You would simply roll the Roth 401(k) directly into the Roth IRA with the help of your plan provider.

Also, please consider the following before making the decision:

  • Do you expect to pay higher taxes in the future.
  • Roth IRAs use after-tax dollars, so you will have to pay taxes upfront on any funds you rollover. With a Roth IRA, your withdrawals will be tax-free.
  • You want to take withdrawals at your own discretion. Traditional IRAs force you to begin taking withdrawals at age 70.5, Roth IRAs do not have the required minimum distribution (RMD).
  • Keep in mind that if you do a Roth IRA conversion from a traditional IRA you may re-characterize your conversion if you decide to undo the conversion due to your investments going down even lower or if you do not have the funds to pay the taxes that year. When converting directly from a 401(k) to a Roth IRA the re-characterization is not an option.

Rolling your 401(k) into a Roth IRA, especially while your investments are down in value, makes sense but it is still wise to consult with your CPA and Financial Advisor to make certain taking into consideration your personal financial situation.

April 2017
    Retirement, IRAs, Taxes
How can I determine if converting an IRA to a Roth IRA will be worthwhile?
100% of people found this answer helpful
April 2017
    Retirement, 401(k), IRAs
What could I gain from rolling over a 401(k) into an IRA while already in retirement?
100% of people found this answer helpful
April 2017
    Retirement Savings, 401(k), IRAs
How would rolling over my 401(k) to a Traditional IRA affect my contribution limit for 2017?
100% of people found this answer helpful
April 2017
    Stocks, Taxes
Are profits from options trading subject to a FICA tax?
100% of people found this answer helpful
April 2017