Page 22 - The Jewish Voice - January '25

Page 22, The Jewish Voice
Lifestyles from page 21
When Is a Good Time for Roth
Conversion?
By Sally Sima Stahl
In life, you often get second
chances — and the same is true
with investing. To illustrate:
You might not have been able
to contribute to a Roth IRA
during your working years due
to your income level, but you
may get that opportunity as you
near retirement or even when
you are retired — through a
Roth conversion.
And you can do so by converting your traditional IRA to a
Roth. While this sounds simple, there’s a major caveat: taxes.
You’ll be taxed on the amount in pre-tax dollars you contributed
to a traditional IRA and then converted to a Roth IRA. (If you
have both pre- and after-tax dollars in your traditional IRA, the Tip of the Tail
taxable amount is based on the percentage of pre-tax dollars.)
the key benefits: New Year’s Resolution:
Why is a Roth IRA desirable for some people? Here are
If you have large amounts in a traditional IRA, the tax bill on Get Your Pet Bikini Ready!
conversion can be significant. The key to potentially lowering Obesity is not only a
this tax bill is timing. Generally speaking, the lower your income growing concern among
in a given year, the more favorable it is for you to convert to a humans but also among
Roth IRA. So, for example, if you have already retired, but have our furry companions.
not started collecting RMDs, your income may be down. It is estimated that 56
• Tax-free withdrawals: You put in after-tax dollars to a Roth percent of dogs and 60
IRA, so you can withdraw your contributions at any time, free percent of cats are overweight or obese. As pet owners it is crucial
of taxes and penalties. And if you’ve had your account for at for us to recognize and address this issue that can significantly
least five years and you’re at least 59 1⁄2, you can also withdraw impact the health and well-being of our beloved pets.
your earnings free of taxes. Obesity in pets is more than just an aesthetic concern; it is a
• No RMDs: With a traditional IRA, you’ll have to start serious medical condition that can lead to a plethora of other health
taking withdrawals — called required minimum distributions, problems. Just like in humans, obesity in animals can increase
or RMDs — when you turn 73, or 75 if you were born in 1960 the risk of various diseases such as diabetes, osteoarthritis, heart
or later. But there’s no RMD requirement with a Roth IRA — disease, and even certain types of cancer. It can also worsen pre-
you can essentially leave the money intact as long as you like. existing conditions like arthritis and respiratory issues, ultimately
Timing also comes into play with the financial markets. decreasing the quality of life for our pets.
When the market is going through a decline, and the value of The primary cause of obesity in pets is an imbalance
your traditional IRA drops, you could convert the same number between calorie intake and energy expenditure. Factors such
of shares of the underlying investments and receive a lower tax as overfeeding, lack of exercise, and genetic predisposition
bill or convert more shares of these investments for what would can contribute to weight gain in animals. Veterinarians play
have been the same tax bill. a crucial role in educating pet owners about proper nutrition,
• Tax-free legacy for your heirs: When your heirs inherit your portion control, and the importance of regular exercise to help
Roth IRA, they can withdraw the contributions without paying prevent obesity in pets.
taxes or penalties, and if the account has been open for at least When addressing obesity in pets, it is essential to develop
five years, they can also withdraw earnings tax-free. a tailored weight management plan that takes into account the
Finally, you could lower your tax bill in any given year by individual needs and circumstances of each animal. This may
stretching out your Roth IRA conversions over several years, involve adjusting the pet’s diet to a low-calorie formula or
rather than doing it all at once. metabolic management diet, increasing physical activity levels,
But even if you were aware of these advantages, you might and closely monitoring their progress. Regular check-ups and
not have been able to invest in a Roth IRA for much of your monitoring by veterinary professionals are essential to ensure
life. For one thing, you might have earned too much money — a that the weight-loss program is effective and safe for the pet.
Roth IRA, unlike a traditional IRA, has income limits. Also, a In addition, if your pet is not losing weight as expected, your
Roth IRA has only been around since 1998, so, in the previous veterinarian can perform bloodwork to check for diseases
years, you were limited to a traditional IRA. such as hypothyroidism or Cushing’s disease that can make it
You’ll want to consult with your tax advisor before difficult for your pet to maintain a healthy weight.
embarking on this conversion — but if it’s appropriate for your As veterinary professionals, we must emphasize the
situation, you could find that owning a Roth IRA can benefit importance of addressing obesity in pets to improve their
you and your family for years to come. overall health and well-being. By working together with pet
As you approach retirement, though, you might start thinking owners to implement tailored weight-management strategies,
of just how much you’d like to benefit from a Roth IRA. we can help our pets live longer, healthier lives free from the
This article was written by Edward Jones for use by your local burdens of obesity-related illnesses.
Edward Jones Financial Advisor, Edward Jones, Member SIPC. Remember, a healthy pet is a happy pet – let’s work together
Edward Jones is a licensed insurance producer in all states to tackle obesity in our furry companions and promote a better
and Washington, DC, through Edward D. Jones & Co., L.P., and quality of life for all.
in California, New Mexico and Massachusetts through Edward Established in 1981, Palm City Animal Medical Center is
Jones Insurance Agency of California, L.L.C.; Edward Jones dedicated to providing the best possible care for your pets. With
Insurance Agency of New Mexico, L.L.C.; and Edward Jones focuses on compassionate care in surgery, physical therapy and
Insurance Agency of Massachusetts, L.L.C. rehabilitation, preventative medicine, extensive diagnostics, and
Edward Jones, its employees and financial advisors cannot emergency service, Palm City Animal Medical Center combines
provide tax advice. You should consult your qualified tax advisor exceptional medical care with a caring philosophy for pets and
regarding your situation. their owners. For more information, call 772.283.0920, visit
Contact us at (561) 748-7600, Sally Sima Stahl, CFP , www.palmcityanimalmedicalcenter.com, or find us on Facebook
®
AAMS™, 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458. at www.facebook.com/PalmCityAnimalClinic.