Success Story of the Month

[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Success Story of the Month" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="March 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid" saved_tabs="all"] More for Less? [spacer height="02px"] By David Edge [spacer height="03px"] While recently meeting with a client who was a young grandmother with three beautiful grandchildren, she was lamenting the fact that she wished she had more to leave the grandkids when she passed. I pressed her for more information on exactly what was she concerned with? She replied that while she was OK with her retirement income she only had a small amount of money in a bank savings account and that each child would only get about $10,000 when she passed. [spacer height="02px"] I was glad she brought it up so that we could have the opportunity to help her with this dilemma. [spacer height="02px"] “How would you like to leave them $20,000 or maybe even $30,000 each?” I asked. [spacer height="02px"] “Impossible!” was her immediate reply. “Au contraire”, I said. “There are ways to make the money worth two or even three times the face amount”. I could tell I had her undivided attention. [spacer height="02px"] There are insurance products on the market that you can purchase with the cash in your savings account that are guaranteed to pay out upon your passing to any beneficiaries you direct. The cash in your saving account is paying you pennies on the dollar in a low -yield bank account while it just sits in your bank. Let’s look at some ways to make that cash more valuable. [spacer height="02px"] We then had a discussion on a Single-Premium life insurance policy. This is a product that will take your one-time payment, and guarantee you a payout larger than your one-time payment. There are factors that affect exactly how much of a multiple the payout will be upon your passing. These factors generally have to do with qualifying for the policy and usually only have a simple blood test by a nurse who usually comes to your office or home. [spacer height="02px"] But for a simple example, you take the $30,000 that’s in your savings account; purchase a single-premium life policy that would have a guaranteed death benefit of $60,000. This is what legacy planning is all about. You are making decisions now that will affect your family later. Your three grandchildren will get $20,000 each instead of $10,000. It would take your bank savings account around 30-35 years at 2% interest to grow to that amount of money. Instead, you’ve doubled the money by just purchasing a policy, instantly. [spacer height="02px"] What’s great about this policy is that the money is fully funded, it’s safe and secure, as an efficient way to transfer wealth. It’s flexible, as many of these policies have value added living benefits and liquidity features with access to the death benefit or cash values should the policy holders’ financial needs change. [spacer height="02px"] She was stunned that these products existed and her family financial planner had never discussed this with her before. I merely reminded her that at American Retirement Advisors we look as all aspects of your retirement and not just sell you products. Grace was more than just a little happy as we reviewed her new options. [spacer height="02px"] Concerned that the small amount of money in a savings account isn’t going to be very much to pass along to your family in the event something happens to you? Call us we can help!   [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/03/Sucess-story-of-the-month-2.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="250px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]

Financial Tip

[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Financial Tip " background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="March 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid"] By David Edge [spacer height="03px"] Check or Credit/Debit Card? [spacer height="02px"] While just about any financial transaction we do can expose us to the criminal element, there are checks and balances that can keep us a bit safer. [spacer height="02px"] You’re standing in line to check out, and the person in front of you pulls out their check book. “How archaic,” you think to yourself. Check writing has decreased by 50% since 2000, but the real exposure to check writers is with fraud. While there appears to be just as much opportunity for fraud with credit and debit cards, the exposure with writing a check may have greater consequences. [spacer height="02px"] If any theft of a credit/debit card happens, alerts happen very quickly with electronic monitoring by the financial institution. A halt is placed on the card in question and a new card is rushed to the client. Misappropriated funds are replaced, and the retail store shares in the loss for taking the fraudulent transaction. Hence, the recent surge in requiring ID for purchases, as well as more stringent usage policies. [spacer height="02px"] On the other hand, writing a check still has all the old proven ways to steal your money. You write a check, it has your name, address, phone number, bank name, routing number, account number and signature all on the check. The numerous ways for theft start as soon as you hand the check to the cashier. A dishonest clerk could copy your check. If sent by mail, the check could be stolen and washed. This is a process where the criminal chemically removes the payee and dollar amount of the check keeping your perfectly legal signature, writes a new amount and payee, and then cashes the check! [spacer height="02px"] The main issue with writing a check is that once the bad guy has your check, they can drain your account and we only have to hope you don’t have your checking account tied to your savings account as both accounts can be drained. Question is, “how much money do you keep in your account to be possibly stolen”? Most folks have taken the precaution of keeping a low balance in their checking account just to cover the balance of checks they have issued. Good thinking! [spacer height="02px"] Retailers are combating the risk, by taking your check at the register and immediate-ly processing the payment and giving the check back to you. Now the check never leaves your sight, and this curtails any opportunity for your personal information to be stolen on the way to your bank. [spacer height="02px"] Recording all check transactions and regularly checking your bank account online are also smart ways to track your transactions against fraud and keeping your information from being stolen. Why not just avoid the risk? [spacer height="02px"] We suggest that you minimize or avoid check writing altogether. Use the safe and secure debit or credit card to protect yourself from fraud. [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/03/Financial-tip-2.jpg" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="200px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]

Success story of the month February 2017

[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="He said She Said..." background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="Success Story of the Month - February 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid" saved_tabs="all"] By David S Edge [spacer height="04px"] [spacer height="03px"] While assisting many folks and couples with  their selections of retirement planning options, we often run into pre-conceived notions about retirement, especially misinformation about Medicare. We will hear things like, “Well, my neighbor told me that her mother…. Or my cousin’s sister told us…” [spacer height="03px"] At times we just have to shake our heads! [spacer height="03px"] Marge and George were just such folks. We spent the first thirty minutes of their appointment dispelling all the things they thought they knew about retirement. Here is a short list of items we discussed. [spacer height="03px"] Marge stated they could get full Social Security retirement benefits at age 62. [spacer height="03px"] Correct answer: Full retirement age for Social Security is age 66. The benefit amount will be approximately 8% less for each year taken earlier. But you can take the discounted amount as early as age 62. [spacer height="03px"]  George thought that he didn’t have to get a Part D Prescription Drug Plan along with his Medigap plan because his HR department stated that Part D was voluntary. [spacer height="03px"] Correct answer: While Part D is voluntary, what his HR department rep didn’t explain was that for each month he didn’t have a Part D, he would be penalized later when he did add Part D. The penalty grows each month he doesn’t have his Part D, and this penalty never goes away! [spacer height="03px"] George’s HR department told him he had to turn on his Part A of Medicare when he turns age 65. [spacer height="03px"] Correct answer: If you continue to work with an employer coverage plan, you do not need to do anything. [spacer height="03px"] George also thought he could continue to contribute to his HSA     [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/01/SuccessStory_Feb2017.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="250px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"]   [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]

Financial Tip February 2017

[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Financial Tip" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0" subhead="February 2017"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid" saved_tabs="all"] By David S Edge [spacer height="03px"] How to invest or save has more to do with where you are in life than you may think. [spacer height="02px"] Let’s begin with definitions. [spacer height="02px"] Invest. (verb) According to Investopia: to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value. [spacer height="02px"] Save. (verb) According to Google: 1. Keep safe or rescue (something or someone) from harm or danger. 2. Keep and store up (something, especially money) for future use. [spacer height="02px"] By definition, investors accept risk in exchange for a potential return. Savers conversely protect their long-term savings from harm. [spacer height="02px"] In our working years, we are supposed to accumulate money for our future needs in retirement. Typically, it is acceptable to take on risk while working which is supposed to be mitigated or reduced by time. This process has served us well up until 2000. 15-year average returns on the markets averaged less than a compounded 3% for that period. You may have fared better in long-term CDs. [spacer height="02px"] The next phase of our investment life is a transitional period we call preservation. This phase should begin 5 years prior to retirement and continue about a year after. This period allows plenty of time to tax efficiently, migrate your long-term holdings, into vehicles designed for income in the next phase. [spacer height="02px"] The final phase we call distribution. This is where the new purpose of your life-long savings is now income. Depending on your needs, wants, and desires, your money now needs to replace income from work, adjust for inflation, and take care of surprises. [spacer height="02px"] Most folks have their investments do things they were not designed to do. For example, how are you supposed to plan for a steady stream of income from a mutual fund that changes in value every minute, and its returns fluctuate with the wind? Even worse, when the market adjusts, what do you tell the mortgage company or the utility company when the value is 20%, 30% or 40% less than it was last week? How is that conversation supposed to sound? “Hi, sorry my investments adjusted a little bit so I’m going to pay you a little bit less this month.” Good luck! [spacer height="02px"] May I suggest a different approach? One that doesn’t lose money, one that may add certainties and guarantees that you can count on? Call the office to learn how a comprehensive retirement income plan may solve the concerns you have about running out of money! [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2017/01/FinancialTip_Feb2017.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="250px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]

Financial Tip of the Month – Dec 2016

[et_pb_section admin_label="Section" fullwidth="on" specialty="off"][et_pb_fullwidth_header admin_label="Fullwidth Header" title="Financial Tip - December 2016" background_layout="light" text_orientation="left" header_fullscreen="off" header_scroll_down="off" parallax="off" parallax_method="off" content_orientation="center" image_orientation="center" custom_button_one="off" button_one_letter_spacing="0" button_one_use_icon="default" button_one_icon_placement="right" button_one_on_hover="on" button_one_letter_spacing_hover="0" custom_button_two="off" button_two_letter_spacing="0" button_two_use_icon="default" button_two_icon_placement="right" button_two_on_hover="on" button_two_letter_spacing_hover="0"] [/et_pb_fullwidth_header][/et_pb_section][et_pb_section admin_label="section"][et_pb_row admin_label="row"][et_pb_column type="4_4"][et_pb_text admin_label="Text" background_layout="light" text_orientation="left" use_border_color="off" border_color="#ffffff" border_style="solid"] At the end of each year there are deadlines for giving, so that you can reduce your taxable income when you file your taxes. Here’s a short list of gift-giving to consider![spacer height="5px"] * Charity begins at home. Got that favorite group that you’ve got a soft spot for? As long as the group is a 501c 3, you can give up to $800 maximum for couples and $400 for single filers for a State of Arizona tax deduction using State Form # 321. Visit www.AZDOR.gov where you’ll find a list of forms for all sorts of donations! There are many options when you donate to organizations that offer assistance to working poor.[spacer height="5px"] * Donate to your favorite school![spacer height="5px"] * Are you employing National Guard members? There is a tax credit for you![spacer height="5px"] * When you make a donation do you all of a sudden get flooded with request from other organizations? These organizations often swap names and contact info, and sometimes they even charge each other as a way to increase income. If you are tired of getting these notices, make sure that you check the box on the donation form that you do not want your information shared. Otherwise, you will need to contact each charity and request they stop contacting you. Want additional help? There is an organization that can help to make your mail requests disappear or be greatly reduced. Contact www.DMAchoice.org.[spacer height="5px"] * Remember to itemize, you can’t just state that you made a donation to a particular organization. If you give cash, get a receipt![spacer height="5px"] * You can donate property!  It’s a double win, in that you don’t have to pay capital gains and you get to discount the fair market value of the item. Remember, you have to own the property for at least one year.[spacer height="5px"] * These charitable donations must be made before the end of the year. If you donate by check, as long as it’s given before the end of the year, it can be cashed after the first of the year by the organization.[spacer height="5px"] * Many employers offer charitable giving via your paycheck at work. Keep an end-of-year paystub for proof of your deduction for your tax return.[spacer height="5px"] Keep in mind that you can’t donate your time for a deduction, nor can you exceed 20% of your Adjusted Gross income. There’s a lot of rules on this, so get advice from your tax preparer. [/et_pb_text][et_pb_image admin_label="Image" src="https://americanretirementadvisors.com/wp-content/uploads/2016/12/present.png" show_in_lightbox="off" url_new_window="off" use_overlay="off" animation="left" sticky="off" align="left" max_width="150px" force_fullwidth="off" always_center_on_mobile="on" use_border_color="off" border_color="#ffffff" border_style="solid"]   [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]

Success Story of the Month

Learn that “No” can be an Answer

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By David S. Edge
[spacer height="20px"] Bert and Dawn have been wonderful parents who wanted everything for their kids. Both parents ran successful and profitable businesses and they, of course, sent the kids to the best schools, bought clothes and sporting equipment, musical instruments, cars, and paid for college degrees at top of the line universities. [spacer height="20px"] As their children grew up and moved out, Bert and Dawn starting thinking about retirement.  They came to our office for a Discovery Meeting and met with our team of advisors after attending one of our many free Financial Retirement Workshops. [spacer height="20px"] As we started reviewing their options, one thing was clear. They didn’t have enough retirement savings to maintain their current lifestyle. So we took them through an exercise to see where their money was going. Lo and behold, all the extra funds they were earning were still going to their kids!! [spacer height="20px"] Turns out that Mom and Dad had helped finance both grown childrens’ home purchases, which were well beyond both kids’ income.  They not only helped with the down payments but were also continuing to give financial assistance for the monthly mortgages as well as all the other birthday, Christmas, gifts, repairs, etc. [spacer height="20px"] It came down to one simple thing. Bert and Dawn had never learned to say “No.” [spacer height="20px"] Another issue that came to light during discussions with our team was that they still had their five-bedroom house even though it was just the two of them. A good portion of income was going for upkeep on the “big house.” Bert also stated that they both knew they needed to downsize, but Dawn did not want to, as the house had too many wonderful family memories. [spacer height="20px"] All parents want to help their children get a “leg up,” so to say, in this modern expensive world, but at some point the kids have to become self-sufficient. [spacer height="20px"] We realize that some of the most important decisions are also the most difficult to make. Bert and Dawn had to make the decision to put each other first and start earmarking their hard-earned money for their retirement. [spacer height="20px"] As the team continued to review the four areas of retirement planning, a blueprint started to evolve to cover not only Bert and Dawn’s financial concerns but also, health, long-term care, and their estate. [spacer height="20px"] By turning off the spigot of their cash flow to the kids, our team was able to show them how the plan we recommended would allow them to grow their retirement income to cover not only their health care, but show them how the plan would continue their income as well as cover long-term care! It also allowed them to create a Trust that planned who, what, and when, their kids and grandkids would receive what Bert and Dawn wanted to leave them as a legacy. [spacer height="20px"] More importantly, we were able to create enough funding in the customized financial plan that allowed Bert and Dawn to keep their much beloved big house! [spacer height="20px"] Dawn was ecstatic!!! [spacer height="20px"] In the end, when their plan was finished, they both felt that the roadmap our planners created was clear and they knew exactly what to do, what to expect, and when. It was specific and left no doubt about results for the next twenty years of their lives. [spacer height="20px"] Call us with the question of:
“this is what we want our retirement to look like and this is what we have to work with.”
[spacer height="20px"] Let our professional team help before you make these important retirement decisions.

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Click here  for the full version of the August Newsletter.

 

Financial Tip of The Month

Major Money Mistakes To Avoid in Retirement  

According to a MetLife survey, an estimated $3 billion a year is lost by retirees in America due to scams, fraud and financial abuse.  After working so hard to get your finances in order for a pleasant retirement, it is so important to be aware of this statistic and do everything you can to protect yourself.  Why do many crooks target retirees?  This is mainly due to the assumption that retirees have large amounts of money. Protect yours!!!!! [spacer height="20px"]

Telephone Scams

[spacer height="5px"] Making a rule to never give any information over the phone may be one of the best things you can do to protect yourself and your finances in retirement.  Statistics show that seniors are most likely to be convinced to give out their information over the phone.  An example of a common telephone scam is the lottery call.  Someone will call and say you won something but that you need to pay a small shipping cost or taxes.  They will ask for your credit card number.  Always say, NO!  Never pay for anything over the phone that you haven’t ordered.  Another scheme that is easy to fall for is the jury duty phone call.  Someone will pretend to work at the court and say you missed your appearance for jury duty.  They will ask for your Social Security number to confirm this.  Simply hang up the phone if you are ever questioning the legitimacy of the phone call.  You can always look up the real court number and call to make sure it was fake.  Make this a hard rule in your home, or even go as far as putting a sticky note on the phone reminding you and your family of your confidentiality. [spacer height="20px"]

The Grandparent Scam

[spacer height="5px"] This is an easy one for anyone to fall for.  A person will call your home pretending to be your grandchild or family member and act like they are in some type of crisis.  Often they will say they are stranded in a foreign country and need to be wired money.  It is also common for the criminal to hack your family member’s email account and email you the message from your family member’s email address.  If you weren’t aware that this is a common scam, most people would fall for it in an emotional panic for their loved ones. This is where it pays to keep yourself informed and aware of such threats to your financial security.

[spacer height="20px"] Computer Scams

[spacer height="5px"] Computer scams are something that the majority of retirees are most fearful of.  A types of scheme involving the computer is the “phishing” tactic.  An email will arrive that says it is from the IRS regarding a tax refund.  This would be very easy to fall into, but certainly do not give your personal information to them online.  Many people also get caught in this scheme by clicking on links that are included in the email.  This may give the schemer access to your email account or files on your computer.  Another type of computer scam involves a phone call from a person claiming to work for Mac or Microsoft.  They may say your computer has a virus and that they can fix it by having you log into a certain website.  This may also give them full access to your computer, and you should be cautious of this. [spacer height="20px"]

Charity Scams

[spacer height="5px"] Many scams involve fake charity organizations and target retirees because they usually have the time to listen to their “sad” story and develop sympathy for the “charity worker.”  This scheme is particularly easy to spot because it will usually involve some sense of urgency.  The scammer will make it sound like it is urgent to donate immediately so that you won’t have time to investigate the charity to verify it’s legitimacy.  This kind of scam is especially upsetting because it is taking advantage of a retiree’s compassion and generosity.  Giving to a charity is an amazing and respectable thing to do, however, make sure to do your research first! [spacer height="20px"] If you ever think you may be a victim of a scam, or are even slightly suspicious that you may have fallen into a scheme, there are a few things you can do.  Notifying your bank personnel is most important.  Bank employees are in a good position to see and handle suspicious activity in regards to your bank account.  You can also contact APS, Adult Protective Services.  This is a government-affiliated agency geared toward investigating reports of elderly financial abuse.  To learn more about ADP, visit www.azdes.gov.    In any case, you should also always alert local law enforcement.  We all hope that these things will never occur in our lives, however, it is smart to be aware and knowledgeable about these schemes that could threaten the retirement that you’ve worked so hard for.  So keep your eyes open and educate your family and loved ones as well! [spacer height="20px"] Brooks, Rodney. "Retirement: 7 Scams Retirees Too Often Fall for." USA Today. N.p., 14 Jan. 2014. Web. 16 July 2015.

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By Allie Vossoughi Picture1

What is a Required Minimum Distribution?

Minimum Retirement Plan Distributions

Qualified retirement plans offer tax benefits if you follow a few IRS rules. Retirement Plans are intended for Retirement Penalties for early withdrawal help discourage early withdraws and guides investors to withdraw their qualified funds during their retirement years.
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Should I convert my IRA to a Roth IRA

Roth IRA Conversion

If you have existing retirement assets in a traditional IRA, you may want to consider converting those assets to a Roth IRA. Possible benefits of converting include tax-free distributions at retirement, no required minimum distributions at age 70 ½, and leaving income tax-free assets to your heirs in the event of your death.   While Roth conversions are not subject to early distribution penalties, they are subject to income tax. Any earnings distributed prior to age 59 1/2 would be subject to penalty and tax. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA. Make sure you have the cash to pay the taxes required to convert to a Roth IRA. Assets converted to a Roth IRA must be invested for at least five years before taking distributions or a significant income tax penalty may apply. For tax years starting in 2010, the $100,000 modified AGI limit for conversions to Roth IRAs is eliminated and married tax payers filing a seperate return can now convert amounts to a Roth IRA. American Retirement Advisors provides general information only and it is not to be construed as tax, legal, or investment advice.  Although the information is believed to be reliable, please note that individual situations can vary.  Always seek professional advice before making any tax, legal, or investment decisions.