Roth Conversion Options

A Roth conversion can be highly beneficial for individuals with large IRAs or 401(k)s, particularly those in higher tax brackets. By converting traditional retirement accounts into Roth IRAs, you pay taxes on the converted amount now, but future withdrawals are tax-free. This strategy can help reduce your taxable estate, minimize required minimum distributions (RMDs) in retirement, and provide more flexibility in managing your tax liabilities in the future. For successful individuals, a Roth conversion can also offer significant long-term tax savings, especially if you expect to be in a higher tax bracket in retirement or if your heirs will benefit from tax-free growth and distributions.

Potential Methods Utilized:

Traditional Conversion

After evaluating your tax and income requirements, we will collaborate with your family to determine an appropriate amount for the current transfer, balancing the level of taxation you are comfortable with. This assessment will be revisited annually, continuing until your desired amount has been transferred from your qualified plan or the process is completed.

Alternative Conversion

We offer several strategies for “Roth-like” conversions, which provide similar tax benefits to a traditional Roth conversion but may offer greater advantages in terms of overall future value and wealth transfer potential. The suitability of these options depends on various factors, including your account size, net worth, income requirements, legacy goals, and other individual circumstances. It is recommended that we thoroughly evaluate your specific needs to determine the best course of action.

RICHARD OXFORD

Financial

Building Wealth, Securing Futures. Trusted Investment Advice with Integrity