Did you have clients perform an IRA conversion to a Roth IRA last year? If so, I’m willing to bet that the value of the account when the conversion took place is a bit higher than it is now. There may still be time to undo the conversion and potentially save clients money.
A quick review on conversions: Taxpayers (other than married filing separately) with a Modified AGI of $100,000 or less may convert assets in an IRA (including a SEP or SIMPLE after 2 years of participation) to a Roth IRA. Taxpayers owe ordinary income taxes on the amount converted, but not the 10% premature distribution penalty.
