How to Reduce taxes on 2022 multi million dollar Roth IRA Conversions

by Retirement Advisor | Dec 13, 2022 | Roth IRA

There is still time to save money on multi million dollar Roth IRA conversions in 2022!

The tax laws are changing!! This case study is of a real life client who called wanting to know how they could reduce their current 2022 projected tax liability of $526k on $1.7m income. They completed a $850k Roth IRA conversion at the beginning of the year, and are looking at taking an additional $300k out of the IRA to pay the taxes.

They know that future tax rates are going up, and they’re worried that congress is going to change to laws to RESTRICT Roth IRA conversions for affluent retirees—so they had three questions:

1.Have we done the right thing converting $850k?

2. Is there anything that we can do to reduce 2022 taxes?

3. How can our overall situation be improved?

ANSWER:

Yes, yes and YES! The Supercharged Roth IRA converson tools can be used to reduce your 2022 tax liability and can help you convert the entire $3.5m IRA account and pay LESS TAXES that you would have paid on the original $850k conversion.

2022 Taxes: $850k conversion ($1.3 after additional withdrawals): $526k

2022 Taxes: $3.5m Normal conversion: $$1.3m

2022 Taxes: $3.5m Supercharged Roth Conversion: $424k

How does this couple save $900k on a $3.5m Roth conversion? The compound benefit of those tax savings grows to more that $35 million.

Their ending net worth increases from $17m (which is still good) to $53 million at age 100.

They benefit from the unique situation of:
1. Strong Social Security benefits
2. Strong pension benefits
3. They don’t need their IRA Required Minimum Distributions to live on

This is just one example of many that we help people solve. IF YOU THINK THAT THE SUPERCHARGED ROTH CONVERSION STRATEGY IS TOO GOOD TO BE TRUE, YOU ARE KIND OF CORRECT. The tax legislation has already been proposed to take away these strategies from tax payers…the writing is on the wall. It is not too late to still benefit in 2022.

If you are interested, click on the link below, schedule a 15 minute introductory call to run through your situation and we can tell you if we can help.

Take Care!!

Dave Anthony
303-518-3662 Direct…(read more)