SunGard’s WealthStation Helps Advisors Guide Clients through Roth IRA Conversion Decisions

Salt Lake City - 30 November 2009

SunGard has enhanced its Roth IRA analysis capabilities for its WealthStation wealth management platform to accommodate new conversion rules taking effect on January 1, 2010. This functionality can help financial advisors provide the guidance their clients need to decide whether or not to convert their traditional individual retirement accounts (IRA) to Roth IRAs.

Currently, taxpayers with a modified adjusted gross income (MAGI) of less than $100,000 in the conversion year may convert their traditional IRA to a Roth IRA. The Tax Increase Prevention and Reconciliation Act (TIPRA) of 2005 eliminates both the MAGI limit and filing status restriction on conversions starting January 1, 2010. While many investors will benefit from converting all or part of their traditional IRAs to Roth IRAs, investors are seeking a greater level of assistance from advisors to help them weigh the advantages/disadvantages and timing aspects of making the conversion.

SunGard’s WealthStation provides calculators to help advisors weigh the impact of immediate taxation upon conversion against the tax-free accumulation and withdrawals available within a Roth IRA. The latest WealthStation enhancements not only reflect the unique tax law changes taking place next year, but also help advisors meet a variety of client needs by taking into consideration and illustrating multiple future tax rates. WealthStation provides a side-by-side comparison of different conversion scenarios as well as:

• Provides two methods for calculating the taxes resulting from an IRA conversion: current tax brackets and user defined average tax rates
• Illustrates three IRA alternatives and three time periods to examine different scenarios that take into account the time of conversion, when distributions are to begin, and annual income generated by each alternative
• Graphically displays the cross-over point (i.e. which option produces the largest dollar amount) between keeping a traditional IRA and converting to the Roth IRA based on current and future tax brackets

Blaine Maxfield, chief operating officer of SunGard’s wealth management business, said, “Investors need more guidance in deciding whether or not to convert to Roth IRAs based on their unique situations. These latest WealthStation enhancements will help advisors assist their clients in understanding the full impact of their Roth IRA conversions.”

SunGard is a leading provider of wealth management solutions that help banks, trust companies, brokerage firms, insurance firms, benefit administrators and independent advisors acquire, service and grow their client relationships.

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