Here’s Exactly How Much You Should Convert to Your Roth IRA to fill up the 22% Tax Bracket скачать в хорошем качестве

Here’s Exactly How Much You Should Convert to Your Roth IRA to fill up the 22% Tax Bracket

Roth conversions are a powerful tax strategy, but implementing them effectively requires careful planning. In this case study, Chris and Cindy, both 65, aim to spend $6,500 per month in retirement while optimizing their tax savings. With $1.2M in Chris's IRA, $500K in Cindy's, and a taxable account of $844K, their income primarily comes from Social Security starting at ages 67 and 70. Their initial low tax liability presents an opportunity for strategic Roth conversions. By converting IRA funds to fill up lower tax brackets (e.g., the 22% bracket), they can avoid significant tax burdens later caused by required minimum distributions (RMDs). Without conversions, their RMDs could result in a six-figure tax bill by age 75, escalating through their 90s. While conversions front-load taxes, this proactive approach could save them nearly $470K in tax-adjusted portfolio value. Tailored strategies ensure that annual conversion amounts align with income changes over time. ======================= 🔗 Connect with us → https://learn.rootfinancialpartners.c... and on Root Financial's Youtube Channel →    / @root_financial   Get access to the retirement software I use and more → https://retirement-planning-academy.m... _ _ ⏱Timestamps:⏱ 0:00 - Meet Chris and Cindy 1:26 - Retirement cash flows 2:30 - Roth Conversions 3:40 - Tax strategy 4:48 - How much and when to convert 7:20 - Details 9:03 - Get a big-picture view first -- Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements. Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.