Could Your Roth Conversion Create a Bigger Tax Bill Than Necessary?
Before converting a traditional IRA to a Roth, discover whether advanced tax-planning strategies could help reduce the tax impact and potentially create additional tax-advantaged retirement income
A Roth Conversion Can Create a Tax Problem
• A traditional IRA can provide valuable tax deferral
• But when you convert traditional IRA assets to a Roth IRA, the taxable portion of the conversion is generally included in your income
• For someone with a substantial retirement account, that could mean a potentially significant tax bill
• And once the conversion happens, the tax consequences generally can’t simply be undone
That’s why the strategy should come before the conversion
Our Roth Conversion Strategy Analysis
Instead of asking: “How much should I convert?”
We start with: “What is the most tax-efficient way to accomplish your retirement objectives?”
It is not uncommon to have tax expenses reduced to as low as 0-15%!
We evaluate factors such as:
Current Income
Tax Brackets
Retirement Timing
IRA balances
Expected Future Income
Potential RMD Exposure Conversion Timing
Available Tax-Planning Strategies
Why Acting Now Matters
- The IRS Will Eventually Collect: Sooner or later, Uncle Sam will require you to pay taxes on your traditional retirement accounts. With taxes historically low right now, many retirees unexpectedly find themselves pushed into a higher tax bracket during retirement
- Ideal Window for Action: While this advanced strategy can benefit many investors, it is exceptionally well-suited for individuals ages 59½ to 65 and those who have inherited an IRA
- Repositioning for Growth and Security: In most cases, these funds can be reallocated into strategies designed to mitigate market risk while capturing compounding, tax-free growth—potentially increasing your lifetime retirement income significantly
Find Out If This Strategy May Apply to You