How to Set an Annual Cap on Roth Conversions

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welcome this video will walk you through
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how to put an annual cap on Rob
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conversion this is useful in situations
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where you're running Rob conversions but
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want to make sure you can control the
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amount that's being converted for
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example if a client says hey you know I
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only want to convert no more than
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$200,000 in a given year this is how you
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can enter that in the software to make
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sure it's accounting for so from your
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dashboard page you want to find the
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three. icon and go to your advanced
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settings
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then you want to open your taxes tab
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here and from there you'll scroll down
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and you'll see the Roth conversion
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section below and then here you want to
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check the box that says enforce annual
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dollar cap on Raw conversion and from
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there we can add our amount so let's say
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my client said hey we don't want to do
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no more than
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$250,000 in a given year I can select
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that as the cap hit
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save and then go back to my
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plan once you saved your changes and
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then you go back to the tax lab an easy
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way to see this is for example if we
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open view strategies and scroll to the
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bottom you'll see that it says a
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$250,000 ceiling on Rock conversions
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have been applied so you always see that
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not as there but then if we go to the
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explor section for example and that even
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though we're saying it'll fill up to the
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32% bracket since we put that
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$250,000 cap it will only fill up to
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that cap and we'll see in this year that
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we're only going to do $250,000 of Roth
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conversion it'll do the same thing for
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the following year so if I scroll down
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you can see we're only going to cap it
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at $250,000 next year the third year
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because we don't have enough to convert
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we're only going to convert what's left
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underneath that capsule here we're just
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going to do a partial year where we're
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only doing $60,000 but hopefully this
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helps for situations where you do want
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to put that annual cap on ra conversions
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thank you for viewing this video please
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reach out to our team if you have any
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questions