Roth Conversions
Let the IRS take a big slice of your savings later…
Or plan smart today and pay less, keep more.
Don't worry, we can help!
The Problem
Many retirees unknowingly share their retirement savings with the IRS. On average, the IRS already owns about 25% of those accounts, meaning a $500,000 401(k) is effectively worth only around $400,000 after taxes. Required Minimum Distributions (RMDs) make this worse by forcing taxable withdrawals, which can trigger additional taxes on Social Security and lead to costly Medicare IRMAA penalties. With no control over withdrawal timing and the uncertainty of future tax rate changes, retirees face a growing “tax bomb” that can erode their savings and limit their financial flexibility.
The Solution
Strategic Roth conversions provide a way to take back control of retirement funds. By converting traditional retirement savings into a Roth account, retirees can lock in today’s known tax rates, eliminate future RMDs, and create a reliable, tax-free income stream. This approach allows retirees to decide when and how much to convert, manage tax payments on their terms, and avoid unpleasant surprises that could affect Medicare or Social Security benefits. With careful planning, the conversion costs can be minimized or offset, ensuring that the IRS is no longer a permanent partner in their retirement.
The Results
By acting now, retirees can achieve the lowest total taxes possible over their lifetimes. Roth conversions provide peace of mind by removing the uncertainty of changing tax laws and ensuring a tax-free stream of growth for both the retiree and their heirs. This strategy delivers greater flexibility, more income options, and a stronger financial legacy. Most importantly, it transforms retirement planning from one controlled by the IRS to one that prioritizes security, certainty, and financial independence.
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