Roth Conversions In Retirement

Roth conversions in retirement are becoming a very popular tax strategy. It can help you to realize income at a lower tax rate, reduce your RMD’s, accumulate assets tax free, and pass Roth money onto your beneficiaries. However, there are pros and cons that you need to be aware of, because processing a Roth conversion involves showing more taxable income in a given year. Without proper tax planning, it could lead to unintended financial consequences such as:

• Social Security taxed at a higher rate
• Higher Medicare premiums
• Assets lost to a long term care event
• Higher taxes on long term capital gains
• Losing tax deductions and credits
• Higher property taxes
• Unexpected big tax liability

In this video, Michael Ruger will walk you through some of the strategies that he uses with his clients when implementing Roth Conversions. This can be a very effective wealth building strategy when used correctly.

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