Putnam unveils online IRA tools for financial advisers

Putnam Investments has joined the slew of fund companies launching online tools to help financial advisers talk to their clients about whether or not they should convert to a Roth Individual Retirement Account.

Putnam Investments has joined the slew of fund companies launching online tools to help financial advisers talk to their clients about whether or not they should convert to a Roth Individual Retirement Account.

Starting Jan. 1, higher-income clients will have the option of converting a traditional IRA or 401(k) to a Roth IRA. Currently, individuals whose modified adjusted gross income exceeds $100,000 are barred from doing a Roth conversion. But, as part of the Tax Increase Prevention and Reconciliation Act, which was enacted in 2006, the $100,000 cap will be lifted.

To help advisers work with clients in deciding whether they should convert, Putnam has introduced its Roth IRA Conversion Resource Center, which includes information about the rule changes and offers tips on things that advisers should consider on behalf of their clients.

Within the Resource Center is the Putnam Roth IRA Conversion Evaluator. Unlike other tools that just tell investors whether they should convert or not, Putnam’s Evaluator provides results along a spectrum of how strongly or not a client should consider a Roth IRA conversion, based on their specific situation.

“We are not providing a simple ‘yes’ or ‘no,’” said William Cass, senior vice president and retirement products marketing manager. “We are trying to complement the more advanced planning tools and the eventual analysis involving a tax professional.”

“The tool is initially only available through the adviser-portion of Putnam’s Web site, but the firm expects to make it available to any visitors eventually, Mr. Cass said.