Weppler Law Office

Roth Conversions After the 2025 Tax Bill

Mon, 27 Apr 2026 10:49:08 -0700

New Issues and Challenges

I have recommended Roth conversions for selected clients. Under the new tax bill, however, there are additional challenges and opportunities that warrant closer analysis.

THE NEW SENIOR DEDUCTION

The bill provides a new $6,000 deduction for taxpayers over age 65, or $12,000 for a married couple. However, this deduction phases out for taxpayers with modified adjusted gross income (MAGI) between $150,000 and $250,000, eventually being reduced to zero.

This phaseout creates a new threshold issue for Roth conversions. At $150,000 of MAGI, a married couple may qualify for the full $12,000 deduction, producing approximately $2,640 of federal tax savings (assuming a 22% bracket).

At first glance, it may appear that a $100,000 Roth conversion would generate an additional $22,000 of federal income tax at a 22% rate. In reality, the tax increase could be $24,640 because the conversion also causes the loss of the $12,000 Senior deduction.

Accordingly, tax projections should isolate this effect, and planners should evaluate whether the Roth conversion remains advantageous at the higher effective rate.

Interestingly, the converse may also be true. Roth conversions completed before age 65 may reduce post-65 MAGI, thereby helping preserve the future Senior deduction.

Disability and Divorce

Fri, 11 Aug 2017 18:10:46 -0700

By June Weppler, Elder and Disability Law Attorney

Weppler Law office

Part 1. Spousal Maintenance and SSI

Jennifer suffers from ruptured disc. She is separated from her husband, and her only income is Supplemental Security Income (SSI) of $734 per month. Jennifer’s husband, Jim, is a construction worker with a limited income.

Jennifer hired a divorce attorney who aggressively advocated for her and obtained a favorable property settlement. In addition, starting next month, Jennifer will receive a $755 per month.

Except first $20 of her spousal maintenance, the SSI program will count the remaining $734 to reduce her monthly SSI check to $0.

Consider this alternative. Jennifer’s husband agrees to pay up to $755 a month as direct payments to her creditors. The direct payments cover a car payment and insurance, a phone bill, a house-cleaning service, and a cable television/internet bill. Since these payments are neither cash or in-kind payment for food and shelter, these payments will not be treated as income by the SSI program and will not affect her eligibility. She will continue to receive her monthly SSI check.

If the direct payments cover basic shelter expenses such as rent, mortgage, taxes or utilities, this will result in as much as a one-third loss of SSI. However, at least the disabled spouse will continue to receive SSI even though in a reduced amount. Where assets are limited, one option may be transferring the house to the disabled spouse and having the spousal maintenance payments made directly to the service provider in the form of mortgage, tax, and utility payments. The house is not considered a resource as long as the disabled spouse lives in it, and she can still keep two-thirds of SSI, in addition to receiving the spousal maintenance payments.

For example, the same scenario as above, except Jim is able to pay $2000 per month. Jennifer and Jim own a house and currently pay $1200 per month for...Read More

Youtube Video on Collaborative Law

Wed, 24 May 2017 08:58:05 -0700

How to find a true collaborative attorney

Thu, 08 Dec 2016 10:20:37 -0800

Most people have their hearts in the right place when they contemplate on separating or divorcing. They want a more amicable and cooperative process. However, a very small percentage chooses collaborative law, and even a smaller number is lucky to have the spouse agreeable to the collaborative process. Every collaborative attorneys would agree that collaborative cases are extremely fragile. We live in a highly litigious world, with a strong gravitation pull towards traditional adversarial approaches to disputes. It is nothing short of a miracle when a couple agrees to divorce collaboratively.

One of the major hurdles for these truly exceptional people is finding the right collaborative attorney. As more people ask lawyers for a collaborative divorce, more attorneys are offering collaborative divorce. Unfortunately, even the most aggressive trial attorneys with no prior collaborative training are happy to offer this service. And, then, there is "cooperative divorce." People are often mislead to thinking that "cooperative divorce" is a functional equivalent to collaborative divorce. "Cooperative divorce" is still a litigation process, in which attorneys will make some efforts to settle before going to trial. Considering 95 percent of all divorce cases don't go to trial, virtually all divorce litigators practice "cooperative divorce." There is a big difference between collaborative lawyers and lawyers who say they want to settle your case.

Collaborative divorce and conventional litigation take place in two separate universes. Going from the world of litigation to the collaborative world is best described in the term, "paradigm shift." It is like switching from Creationism to Darwinism. Usually attorneys by personality, aptitude, and philosophy are either one type or the other. Generally, good litigators don't work well within the collaborative framework unless they have been trained in collaborative law and practice collaborative law on a regular...Read More

Is Collaborative Divorce right for me?

Mon, 07 Nov 2016 11:26:36 -0800

IS COLLABORATIVE DIVORCE RIGHT FOR ME?

My children are very important to me, and I want to act ethically and morally for the sake of my children.
I want to make sure my children and their other parent are well served. I know that, in the long run, I will be happier when they are well taken care of.
I am not perfect, and I have said and done things I regret, but want to speak and act from my best self.
I want my lawyer to be a wise counselor rather than a hired gun and an alter ego.
I am not afraid to speak for myself and my interests with my spouse with the help of one or more collaborative professionals.
I am open to solutions that will satisfy both my and my spouse’s needs and interests.
I may experience anger, resentment, humiliation, and fear, but I do not want these emotions affecting the future of my family and myself acting out of these emotions. Rather, I want to make decisions from a place of calm, respect, and wisdom.
I would prefer a deeper resolution rather than a shallow victory.
I know that at times it may be hard trying to work out solutions for my spouse and me. I may feel at times that it would be easier to fight it out in court and have the judge decide, but I am willing to trust the process and to persevere through the process.
I want to be able to look back and feel good about the outcome and how I handled myself during the divorce process.

Youtube video on collaborative law

Thu, 03 Nov 2016 21:25:58 -0700

What is the difference between mediation and collaborative law?

Thu, 03 Nov 2016 11:59:41 -0700

As a collaborative lawyer, I often encounter the question: “What is the difference between mediation and collaborative law (“CL”)?”

It’s hard for non-lawyers to see the differences; in fact lawyers sometimes struggle to articulate them.

After all, both are non-adversarial processes. Both are forms of interest-based negotiation. Both are voluntary and cannot be concluded unless the parties agree to a resolution.

One difference is that CL has an efficient discovery process built into its structure. Mediation does not usually require an information exchange step as part of its process. This limitation can allow mediation to being used toward the end of the litigation process and viewed as a part of it.

Another difference is when they are used. Typically, parties don’t turn to the use of mediation until litigation is well under way. This could be after thousands have already been spent on legal fees and relationships between the parties have been seriously strained if not destroyed. Alternatively, CL happens at the outset of the dispute resolution efforts, before any litigation has been commenced. So the chances of preserving relationships, saving money, and avoiding the draining of resources and emotions are far greater.

Third, CL is the collective work and energy of an integrated team effort in which all parties and all lawyers are working in collaboration with each other, building upon each other, bouncing ideas around the table, getting instant feedback,...Read More

Articles

Fri, 28 Oct 2016 09:22:34 -0700