Proactive Roth IRA conversions Represent the Greatest Tool that Affluent Retirees can use to REDUCE Taxes. It may not last.
The Supercharged Roth IRA Conversion
Backdoor Roth IRA Conversions-Use it or Lose it!
Under current law, contributions to Roth IRAs have income limitations. For example, the Adjusted Gross Income (AGI) range for Single taxpayers for making contributions to Roth IRAs in 2022 is $129k to $144k. For a Married Filing Jointly taxpayer the range is $204k-$214k. Affluent tax payers with incomes above $144k or $214k, are generally not permitted to make Roth IRA Contributions, but they can however, CONVERT existing IRA or 401(k)/403(b)/457 plans to Roth IRAs without income restrictions. Therefore, a retiree with $5 million in tax deferred IRA accounts could convert the entire amount to a Roth IRA account without limits. Affluent retirees beware, that your ability to take advantage of this "back door Roth IRA conversion" strategy has not always been available, and the writing is on the wall that it could be going away.
In 2010, The "Tax Increase Prevention and Reconciliation Act" removed income restrictions for Roth IRA Conversions. For the first time since Roth IRAs were introduced in 1997 via the Tax Payer Relief Act, retirees with multi million IRA/401(k) accounts, or AGI amounts above the threshold, could gain access to tax free Roth IRA accounts via conversions, irrespective of the still-in-force income limitations for Roth IRA Contributions at the time. Recent proposed legislation is threatening to remove and restrict the ability of affluent retirees to gain access to Roth IRA accounts by reverting to pre 2010 income restriction regulations on Roth IRA conversions. Welcome to the new reality of how the government is going to fund its out of control spending....by taking it from you, the Affluent Retiree.
Enter the backdrop for the Supercharged Roth IRA Conversion process--showing you how the affluent retiree can Roth convert multi million IRA accounts and pay as little in taxes as possible..
How it Works
Schedule a time to get on our calendar for a quick 15 minute phone call. We can explain more about how the process works, and if you would be a good fit. The Supercharged Roth IRA conversion tools that we use have been around since before Roth IRAs were invented in 1997, and follow well established tax law.
EXAMPLE
A typical $1 million Roth IRA conversion would cost a married tax payer around $400k in taxes (State/Federal)
Combining the Supercharged Roth IRA conversion tools could reduce their tax liability to under $10k.
Saving $390k in taxes on $1 million Roth IRA conversion could be worth almost $4 million at 8% over the next 40 yrs. You owe it to yourself and your family to find out if the strategy could work for you.
The Larger the Conversion, the Greater the Tax Savings
Tax Savings
Supercharged Roth IRA conversion tools have been used for years to help affluent retirees save hundreds of thousands of dollars on Roth conversion taxes
$3 million Roth IRA Comparison
See the graphic below comparing the taxes payable on a (1) normal $3 million Roth IRA conversion, (2)"filling up the 24% tax bracket", (3) a Supercharged Roth IRA conversion, and (4) a Supercharged conversion with additional Social Security optimization + asset selection.
65 yr old couple, both retired
SS and Pension income of $80k yr (when fully elected)
$3 million IRA to Roth convert
