Meet the Bakers!
64 Yr old Retired couple from Arizona saves $16 million dollars in lifetime taxes and increases their net worth by an additional $112m by using the Supercharged Roth IRA conversion tools.

BALANCE SHEET OF ASSETS:
$4.1 million IRA assets
$360k Roth IRA assets
$516k Checking/Savings
$900k Real estate (Personal and 2nd house—paid off)
Future Social Security benefits at 67: $100k/yr

What are the consequences of not doing a proactive Roth IRA conversion?

1.Social Security Income = TAXABLE
a. $5 million lifetime benefits
b. $1.75m in taxes

2. IRA Required Minimum Distributions= TAXABLE
a. $41 million lifetime distributions
b. $14 m in taxes

3. Higher Medicare Part B/D premium surcharges
a. $300k in higher premiums
b. Further reduction of Social Security benefits

4. Net Investment Income tax
a. 3.8%

5. Higher Capital Gain tax
a. 20%

If you have over $1 million in a tax deferred IRA/401(k) account, you could save hundreds of thousands of dollars throughout retirement be using the Supercharged Roth IRA conversion techniques.

The Bakers were smart enough to know that if they didn’t do something about their future Required Minimum IRA distributions that they would have a big tax problem, they just didn’t know that it would be $14 million dollars big. When the analysis was complete, not doing a Roth IRA conversion will increase their lifetime taxes on Social Security benefits by $1.75 million, lifetime taxes on IRA RMDs by $14 million, and incur Medicare Part B/D surcharges to over $300k

There is a better way: The Supercharged Roth IRA conversion

We can run the numbers for you to determine what your savings may be. Click on the link below to find out how the Baker’s were able to do a lump sum Roth IRA conversion for $4.5 million dollars in 2024 at a 10% effective tax rate.

40 different case laws from the IRS back up and reaffirm the Supercharged Roth IRA conversion tools. They worked for the Bakers, and they could work for you.

Click on the link below to set up a 15 minute review!

Thanks,

Optimal Tax, LLC

Disclaimer:
The Baker case study is based on actual clients that live in AZ, but the names have been changed. Video is for education purposes and is not a solicitation to buy or sell any investment. Optimal Tax, LLC is not an investment advisor nor does it pretend to be one. Results may vary depending on your individual situation….(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

A Roth IRA conversion is a financial strategy that allows individuals to move funds from a Traditional IRA or 401(k) into a Roth IRA. This conversion can have significant tax implications, as funds in a Traditional IRA or 401(k) are typically tax-deferred, meaning they have not been taxed yet. By converting to a Roth IRA, individuals pay taxes on the amount being converted now, but can potentially avoid paying taxes on any future withdrawals.

While a Roth IRA conversion can be a beneficial financial move for some, there are consequences for not doing a conversion that individuals should be aware of. Some of the potential consequences include:

1. Missing out on tax-free withdrawals in retirement: One of the main benefits of a Roth IRA is the ability to make tax-free withdrawals in retirement. By not converting to a Roth IRA, individuals may be missing out on the opportunity to save on taxes in the future.

2. Increased tax liability in retirement: If individuals do not convert to a Roth IRA, they may continue to have a Traditional IRA or 401(k) that will be subject to required minimum distributions (RMDs) once they reach age 72. These RMDs are taxed as ordinary income, which could potentially result in a higher tax liability in retirement.

3. Limited flexibility in retirement planning: Roth IRAs offer more flexibility in retirement planning compared to Traditional IRAs. For example, Roth IRA distributions are not subject to RMDs, and individuals can continue to contribute to a Roth IRA after age 72 if they have earned income. By not converting to a Roth IRA, individuals may limit their ability to optimize their retirement savings and tax planning strategies.

4. Potentially higher taxes for heirs: Roth IRAs offer unique inheritance benefits, as beneficiaries can receive tax-free distributions from a Roth IRA. By not converting to a Roth IRA, individuals may be leaving their heirs with a potentially higher tax burden on inherited retirement funds.

In conclusion, there are several consequences of not doing a Roth IRA conversion that individuals should consider when evaluating their retirement planning strategy. While a Roth IRA conversion may not be the right choice for everyone, it is important to weigh the potential benefits and drawbacks to make an informed decision. Consulting with a financial advisor can help individuals determine the best approach for their specific financial situation and goals.