This video highlights some of the more dramatic benefits that can be derived from utilizing the SUPERCHARGED ROTH IRA conversion strategy that I teach.

Bill & Martha Millionaire (names have been changed, but this is based on a real case)

Husband & Wife both age 65 and RETIRED

$5 million IRA (60%/40% split)
$1 million regular brokerage (60%/40% split)
$1 million Checking/Savings

Income:
$50k Pension – 3% inflation and 50% spousal continuation
$56k Social Security at 66 or $71k at age 70-trying to decide
$64k Dividends/Interest

Expenses:
$100k/yr (inflation adjusted)

Case #1 No Roth IRA Conversions

Lifetime RMDs: $ 29 million
Lifetime Taxes: $ 20 million
End Net Worth: $ 45 million

** This is crazy! If they don’t do something, they will pay more in taxes during retirement than they made their entire working lives!

Case #2 Normal Conversion-Fill up the highest Tax Bracket!

Lifetime RMDs: $ 828k
Lifetime Taxes: $ 9 million
End Net Worth: $ 60 million
Roth Conversion timeline: 17 years and it costs $5 million

**This is crazy! 17 years and $5 million in taxes to do a Roth conversion?? There has to be a better way. This is why most retirees drag their feet and don’t do Multi Million Roth IRA conversions…it takes too long, and too much is spent early on in retirement on taxes thereby exposing them to much greater financial risk.

Case #3 Supercharged Roth IRA Conversion

Lifetime RMDs: $ 0
Lifetime Taxes: $ 5 million
End Net Worth: $ 105 million
Roth conversion timeline: Six years…..$595k in taxes

By not doing Roth IRA conversions, Bill and Martha will have a lifetime of higher taxes, reduced Social Security payments, increased Medicare Premiums, and shortchanged themselves/kids/charities $60m.

** These are not pie in the sky numbers….we can run the numbers for your own situation. If you have over $1 million in your IRA/401(k) and you have other sources of income in retirement, the tax liability on your Required Minimum Distributions will just get worse and worse. There is a better way!

Click on the link below to set up a call! We have taught thousands of retirees how the Supercharged Roth IRA conversion process works, and can do the same with you!

Take Care!

Dave Anthony
www.OptimalTaxplan.com
dave@optimaltaxplan.com

Disclaimer:
This is not an offer to buy any investment. Although the above case study was based on actual clients, your individual results may differ from the above scenario based on current available tax planning techniques and tools available at the time. At the time of this video, all of the tax planning tools are available….(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Saving taxes on million dollar Roth IRA conversions is a top priority for many individuals looking to maximize their retirement savings. With careful planning and strategic maneuvers, it is possible to minimize the tax impact of converting a traditional IRA or 401(k) into a Roth IRA. Here are some tips on how to save taxes on million dollar Roth IRA conversions.

1. Spread out the conversion over several years: Converting a million dollar traditional IRA or 401(k) into a Roth IRA can result in a hefty tax bill. To avoid a significant tax hit in a single year, consider spreading out the conversion over several years. By converting a portion of the funds each year, you can keep your income tax liability to a manageable level and potentially reduce your overall tax bill.

2. Utilize tax brackets: Take advantage of lower tax brackets by strategically timing Roth IRA conversions. If you have a year with lower income, it may be an opportune time to convert a portion of your traditional retirement accounts into a Roth IRA. By staying within a lower tax bracket, you can minimize the tax impact of the conversion.

3. Consider charitable giving: If you are philanthropically inclined, consider using a donor-advised fund to support charitable causes and save taxes on Roth IRA conversions. By donating appreciated assets or funds from your traditional IRA to a donor-advised fund, you can receive a tax deduction and potentially offset some of the tax liability from the Roth IRA conversion.

4. Opt for partial conversions: Instead of converting the entire million dollar traditional IRA or 401(k) into a Roth IRA, consider partial conversions. This approach allows you to control your tax liability by converting only the amount that makes sense for your financial situation. It also gives you the flexibility to adjust your conversion strategy based on changing tax laws and personal circumstances.

5. Utilize tax deductions and credits: Take advantage of available tax deductions and credits to reduce the tax impact of Roth IRA conversions. For example, if you have business expenses, medical expenses, or education expenses, you may be able to offset some of the tax liability from the conversion.

6. Plan for Required Minimum Distributions (RMDs): If you are close to the age of required minimum distributions (RMDs) from your traditional IRA or 401(k), consider the impact of RMDs on your tax situation. By converting a portion of your traditional retirement accounts into a Roth IRA before RMDs kick in, you can potentially reduce the tax impact of future distributions and secure tax-free growth for your retirement savings.

In summary, saving taxes on million dollar Roth IRA conversions requires careful planning and strategic maneuvering. By spreading out the conversion, utilizing tax brackets, charitable giving, partial conversions, tax deductions and credits, and planning for RMDs, you can minimize the tax impact of converting a traditional IRA or 401(k) into a Roth IRA and maximize your retirement savings. It is essential to consult with a financial advisor or tax professional to create a personalized strategy that aligns with your individual financial goals and circumstances.