Silber Bennett Financial
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.
Professional & Securities Licenses:
FINRA Series 53 Municipal Securities Principal
FINRA Series 79 Investment Banking
FINRA Series 7 General Securities
FINRA Series 22 Direct Participation Programs
FINRA Series 63 Uniform Securities Agent State Law
BA, Liberal Arts, Magna cum Laude, University of Texas at Austin
SECURITIES AND ADVISORY SERVICES OFFERED THROUGH SILBER BENNETT FINANCIAL, INC.
DOI: CA 0H72697 | MEMBER: FINRA / SIPC
Why Choose Rebecca Dawson
Rebecca Dawson on To The Point
Moving, or converting, your tax deferred traditional IRA funds into a Roth IRA can give you many advantages in addition to eliminating your RMDs. Converting your traditional IRA (or at least a portion of these funds depending on what taxes could easily be paid on those dollars the year of conversion or over a series of years) into a Roth IRA is a simple solution. By converting your traditional IRA into a Roth IRA you will:
- Reduce your tax rate risk: The risk that taxes in the future could be higher than they are today. Once it is converted, any withdrawals from the Roth account after five years and achieving the age of 59.5 will be tax-free.
- Eliminate your Required Minimum Distribution (RMD): Once you turn 70.5 years of age the government requires you to take these funds out of your traditional IRA every year. If you forget or choose not to take these funds out of your traditional IRA, there is a 50% penalty. Whereas, with a Roth IRA there is no RMD.
- When withdrawing funds from your traditional IRA, the income counts as provisional income, whereas when withdrawing funds from your Roth IRA, the distributions have no Social Security tax. Roth IRA distributions do not count against income thresholds that may cause Social Security benefits to be taxed.
- Your heirs will receive your Roth funds tax-free.
- Roth IRA conversions may be re-characterized if your financial situation changes that year.
Converting from a traditional IRA to a Roth could be a useful tool. By paying taxes today you can take advantage of your current low income tax rate.
Read more: Tax Savings with a Roth IRA and Real Estate.)
If you have been renting your entire life then, at this point, is it a priority to be a homeowner. It would also be a function of other assets held and where you are looking geographically to buy a home. Alternatively, there are other ways of investing in real estate outside of purchasing a home. Among them are real estate investment trusts that are publicly traded as well as non traded REITs that do not have the volatility of the stock market.
It would be difficult to ascertain your appropriate level of risk without more detailed personal financial information.
Read more: What is the difference between a REIT and a real estate fund? | Investopedia https://www.investopedia.com/ask/answers/012015/what-difference-between-reit-and-real-estate-fund.asp#ixzz59m36aXGq
Yes, you can contribute to a spousal IRA for her. Stay-at-home parents, retirees with a spouse who is still working, and others who were unemployed for the year but had a spouse who earned an income can benefit from tax-advantaged retirement savings.
The working spouse may contribute up to $5,500 to his or her own IRA and up to $5,500 for the nonworking spouse as long as the working spouse’s annual income was at least as much as the combined contributions. You can add an extra $1,000 for each spouse who is age 50 or older with the catch-up contributions.
Also, in order to take advantage of this situation you not only have to be married, but your tax filing status must be “married filing jointly.” You cannot make a spousal contribution to an IRA if you are filing separately.
A savings account is taxed by the IRS on form 1099-INT. Your financial institution that holds your savings account mails these forms to their customers in late January for the previous year's interest. You are only taxed on any interest earned in the account over a minimum of $10, although the IRS requires you to report all taxable interest in your income.
Keep in mind that some banks offer cash incentives to open a new savings account, those bonuses are also taxable and need to be reported once a year as well.
This only applies to traditional savings account or an online savings account which would generate taxable interest income. Not to be confused with an IRA savings account which are tax deferred and you pay taxes when the funds are withdrawn. IRAs have contribution limits, but with a traditional savings account, there are no limitations on contributions.
If your taxes are not paid on the interest earned in your savings account, the IRS will enforce penalties and fees.
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.