You pay income tax at conversion. Growth after that is tax-free.
A Roth Conversion Guide for IRA Owners
Convert to a Roth. Pay tax on what it’s truly worth.
An IRA-owned LLC and an independent valuation can lower the taxable value of your Roth conversion.
A Roth IRA never forces you to withdraw during your lifetime.
A conservative valuation discount on the LLC you convert.
Worked Example
How valuation can change the numbers
The guide illustrates how the value of an IRA-owned LLC may differ from the value of a comparable unrestricted LLC.
Comparable unrestricted LLC
$100,000
Same LLC, owned by your IRA (40% discount)
$60,000
Illustrative only. Your taxable value depends on your own formal valuation, reviewed by a CPA.
The Process
How it works — five steps to a Roth
The one-page guide outlines this five-step process:
1
Transfer
Move your IRA to Solera National Bank. No tax.
2
Form the LLC
Your IRA owns it; you manage it.
3
Valuation
Independent, CPA-reviewed fair market value.
4
Convert
Taxed on the appraised value.
5
Invest or Transfer
Your Roth can return to the custodian or invest using the LLC.
Resources & Downloads
Explore the Roth conversion materials.
Download the guides and presentation below for an overview of the Roth conversion process, valuation considerations, and the Roth Rollback Strategy.
ONE-PAGE OVERVIEW
Roth Conversion One Page — Advisors
A concise overview for advisors, attorneys, CPAs, and plan owners.
Download PDF ↓10-PAGE GUIDE
Roth Conversion Guide for IRA Owners
A detailed guide covering the Roth advantage, valuation, discounts, IRA rules, and the conversion process.
Download PDF ↓WEBINAR PRESENTATION
The Roth Rollback Strategy
A presentation prepared for tax plan experts, explaining the strategy and its steps.
Download PDF ↓These materials are for general educational purposes and are not tax, legal, accounting, or investment advice. Individual valuation and tax results depend on the facts and circumstances of each situation.
Let's Talk
Have questions about a Roth conversion?
Call or email to request the free guide or arrange a complimentary 30-minute consultation with or at IRA Valuations.